Q: Hi Sir, I have been working with a company as a partner on the trade licence and working for them as an employee. I am not in the company anymore, however, during the business with them I gave a blank cheque as a security for the investment and I gave it based on trust. Now, he wanted to take personal revenge and deposited my cheque by putting an amount of AED 1 Million on that and the cheque bounced. I don't know what to do now and I need advise on this, please.

Q: Do the local sponsors have financial responsibility for bounced cheques from the company that they are sponsored? If I got cheques but they were bounced and the person who signed the cheques (managing director) left the country. Company is in labor zone, retail, 2 operating shops.

Q: Hi Mr Younis, I require help to sort out my father's legal issues pertaining to a company he had. There are dues with a bank in the UAE and his partner who was also a signatory on the cheques has managed to remove his cases and has left my father to deal with the liabilities albeit he was the one who misused the company funds. I have two questions: 1) How can someone who was a partner of a company absolve themselves of al legal recourse albeit their signature is on all bounced cheques? 2) Would your law firm be able to help with getting the cases resolved and getting my father's business partner take the responsibility for his share of the liabilities? Thank you

س: السلام عليكم، أنا مدير وشريك فى مطعم سابقًا وتم الإخلاء الجبري لعدم دفع الإيجار والمالك يطالبني بدفع الإيجار المُستَحق حتى ميعاد الإخلاء بما يعادل 79000 درهم مع مصاريف المحكمة. وبحكم أنني مدير الشركة، فقد صدر ضدي قرار تعميم وضبط وإحضار، وبالتالي منع من السفر وقد سافر جميع الشركاء. فما موقفى القانونى حيث أنني لا أعمل وليس لدي مصدر دخل للتسوية؟ وكذلك فأنا أرغب في الحصول على وظيفة جديدة أتمكن بها من سداد الديون المستحقة عليّ، ولكن لا أستطيع في وجود هذه القضية. انصحني بالله عليك! ولكم جزيل الشكر والعرفان!

Q: Hi, I am not a resident of the United Arab Emirates and there was an unpleasant situation with me. My business partner issued a check on my behalf and forged my signature. The amount of the check is 3 million dirhams. I got an international arrest warrant. Now I can’t come to the UAE for objective reasons. I need your consultation. How can I prove my innocence?

Q: I have filed a bounced cheque case in Sharjah courts. The judge appointed an expert meeting. In the application forms, I found out that my brother and the relationship manager of the bank opened a bank account under a company name in FZE. They used my signature on the application form and put the company stamp of one of our other company FZC which I am a partner in. But the bank statement of FZE shows the account's opening date of 2009. Whereas the trade license shows it was formed in 2011. So how can he open a bank account in 2009 if the company was formed in 2011? I have a copy of the audit report signed by my brother showing the profits in the FZC. which he took as a dividend and transferred the funds to the FZE which he is 100% shareholder on the audit report. But the company bank account is in my name. He has transferred all the funds into his own account. As you can see that there is only a difference in the spelling word C and E between the 2 companies. Waiting for your reply.

Q: I am a partner in an LLC company that has faced many labor cases and judgments by the court. In the current situation, the company is not able to pay, will there be any travel ban on the partners? Thanks!

س: أبرمت عقدًا مع شركة لبناء عقار وحسب. مدون بالرخصة التجارية للشركة أنها مملوكة لشريك بنسبة 99% وهو شركة أخرى تقوم بنفس النشاط. هل بالإمكان اختصام الشريك بناءً على أنه يتملك ما نسبته 99% من الشركة التي تعاقدت معها؟

س: السلام عليكم، سؤالي عن الديون المالية التي ترتبت على أحد الشركاء في مؤسسة ذات مسؤولية محدودة. كان الهدف من الديون وقيمتها 200 ألف درهم تأسيس الشركة. الشركة بها شخصين (شركاء)؛ الشريك الأول أعطى شيك ضمان مقابل الدين للدائن. استولى الشريك الثاني على مدخول الشركة وأبدى عدم استعداده للتعاون مع الشريك الأول لتسديد الالتزامات المترتبة على الشركة، بالإضافة إلى حكم من لجنة فض المنازعات الإيجارية بدفع قيمة إيجار سنة على الشركة. كل ذلك يتحمله الشريك الأول حاليًا لأنه هو الذي قام بالاقتراض ووقّع عقد الإيجار مع المؤجر. قام الشريك الأول بإلغاء الرخصة التجارية بعد صدور حكم المحكمة بالتنفيذ لسداد قيمة شيك الضمان، وإلغاء الرخصة تم بعد صدور حكم لجنة فض المنازعات بفرض قيمة الإيجار على الشركة. كيف يمكن للشريك الأول تقاسم هذه الأحكام والمقدّرة بـ 300 ألف درهم مع الشريك الثاني المتهرب من جميع تلك الالتزامات؟ وهل يمكن السير في إجراءات تصفية الشركة بعد إلغاء الرخصة التجارية؟ وهل يمكن إيقاف إجراءات تنفيذ قضية الشيك (الدين) لحين الانتهاء من تصفية الشركة؟ وشكرًا لكم!

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.

This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.

This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.

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.

The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.