Q: Dear all, First of all, thank you for providing help and support to us on these legal matters. My question is: Our company had two partners, and we decided to close it a few months ago (certification of deregistration has already been obtained). There were not any special agreements (No cheques, letters, loans, etc.) whatsoever. After we closed everything, the other partner is claiming that he has lost money and is threatening to sue me. There were not any notifications or special conditions made before closing the company. Can he come back and ask for compensation for his loss? We both lost different amounts, and in the end, we both agreed to close the company and we did. So would it be possible that he can ask for anything now? Thank you in advance for your help! Kind regards,

Q: What is the process to close an LLC company which makes losses? I am a partner. My partner/ managing director didn't make any audit nor accounting for 5 years. I filed a case against him. He mismanaged the company and it went into losing more than the capital, 200% of the capital and he didn't inform me. What should I do?

Q: One partner wants to leave the company. What are the options if the other partners are not willing to let him go? It's a tech company and the partner in question is the CTO, without him, the company will almost certainly fail. There are accumulated operational losses to the tune of AED 4 million. It's a Dubai Mainland LLC. The second partner is a Dubai company who acts as a collaborator in some of our projects. We recently found out that the GM and a couple of top managers in that company are building a clone of our most promising product. We can prove it too. Both the teams happened to bid for the same opportunity and the customer realized both are exactly the same product and informed us. Is this enough legal grounds to demand release from the partnership?

س: السلام عليكم، أنا شريك في شركة عائلية (ذ.م.م) تتكون من ٨ أشخاص. حدث اختلاف بيني وبين الشركاء. طلبت الميزانية الختامية فرفضوا. راجعت مكتب التدقيق وطلب مني فرصة يوم وبعدها اعتذر. ما العمل لكي أحصل عليها؟

The UAE continues to strive to modernize its laws and create more flexibility in meeting the needs and requirements of investors and businessmen and elevate its economy to the highest levels of growth and development.

Companies can be wound up by Voluntary Liquidation. This shall proceed as initiated by shareholders or creditors of a company by passing a valid shareholder’s resolution. When a company’s financial mechanism fails, and the company is in financial distress and/ or becomes insolvent whereby it is unable to pay off its debts, the company may file a petition for winding up to the court.

An interview-format article covering the topic of shareholder disputes in the UAE and pre-emptive measure to be considered. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

The provisions of this Law apply to the commercial companies established in the UAE and the foreign companies that have established in the UAE a base to conduct any activity therein or established a branch or representative office. The Law abrogates Federal Law No. (8) of 1984 Concerning Commercial Companies.