Questions & Answers
A new partner is delaying the payment of his share. What to do?
Dear Lawyers,
I have a company in Sharjah FZ. I hold 51% shares and my partner holds 49% shares. I am the director, manager, and the sole beneficiary of the company bank account. We are both now under the company visa.
I, as the business owner, demand a few things for him to provide before he can benefit from the company. The point of the agreement is:
- The new shareholder needs to provide business development capital for AED 145,000, payment will be on several terms.
Since I made the change on the license and put him under the company visa, he has been delaying paying the capital.
I have been chasing him through messages and phone calls, but he is still not responding. This made the cash flow of the company a mess.
1. What legal step can I take to take him out of the company and seek compensation for the mess he made with the company?
2. Will it be better for me to file bankruptcy or to fight the legal action against him?
Thank you so much, appreciate your answer!
Good Day,
The right way to move forward with this will be an attempt to settle the matter with the other party. Based on more details of the case we at vnz legal can assist you.
For further information, kindly contact me through email.
Thank you
Hello,
As a shareholder and director of the company, you have certain rights under your company's AOA and if anything contrary happens to it, you have the right to take legal action.
In the instant case, if the agreement mentions an initial capital amount, then it has to be settled without any delay.
Further, if such a delay has resulted in any financial turmoil for your company, you can initiate legal actions against your partner to the extent he is liable.
If you need legal representation for the same, call me.
Thank you!
Dear Questioner,
1. What legal step can I take to take him out of the company and seek compensation for the mess he made with the company?
- You can file a case to ask for the capital amount that he didn't pay and the compensation for any confirmed losses which may happen to your company.
2. Will it be better for me to file for bankruptcy or to fight legal action against him?
- You are not advised to file bankruptcy because your matter is not related to bankruptcy.
For more information, you can email me or WhatsApp me.
Dear Client
Thanks for your query.
I am happy to assist you with this case.
You can file a legal civil commercial case in Sharjah court..
If you want, we can help you to file the case and follow the legal procedures on your behalf.
You can contact my team member or send us an email.
