Q: Hi there Michael, I am a 24% shareholder in an LLC wherein the other shareholders are our local partner with 51% shares and the partner who is listed as manager on the trade license with 25% shares. The manager has absconded leaving behind unpaid VAT and other debts that are well over 30 days due (up to a year). No proceedings by creditors have been filed against the company and the MOA contains a general POA in favor of the Manager. I would like to wind down the company without going through bankruptcy procedures. My understanding is that the listed manager of an LLC is personally liable for the Company's debts. I need advice about the procedures required to wind down the company. I do not wish to go through bankruptcy procedures as the finances and management of the company were being handled by the manager. I am just the creative director of the LLC. Please advise as soon as possible.

Q: In the UAE, a company in financial difficulties should go for bankruptcy or liquidation? What is the cheaper and faster option provided the owner is a manager and partner in the company?

س: السلام عليكم، انا مدير شركة خاصة ذات مسؤولية محدودة ولدي توكيل بإدارة المنشأة وإجراء المعاملات الإدارية مع البنوك والى آخره، كما لدي صلاحية التوقيع على الشيكات. في آخر أشهر، دخلت الشركة في خسائر تجارية معينة. صاحب الشركة سافر لبلده بحجة قضاء إجازة والعودة فكنت مسؤولاً عن إعطاء شيكات لشركتين مختلفتين لكن بعد انقضاء الوقت المحدد لم يعد المالك صاحب الشركة والشيكات ارتجعت بحكم أنه لا يوجد رصيد في البنك. المشكلة انا صاحب الشركة في الوقت الحالي لا يجيب على الرسائل ولا توجد طريقة أخرى للتواصل معه و لنا، موظفي الشركة، رواتب متأخرة والتزامات لم تسدد، فما الحكم القانوني عليّ بعد إمضاء الشيكات؟ علمًا بأن اسمي غير مذكور في الرخصة التجارية. أنا مدير إداري. وشكرًا مسبقًا!

س: السلام عليكم، لدي استفسارات بخصوص الشيكات المرتجعة. عندي شيكات مرتجعة وسبب الارتجاع عدم كفاية الرصيد. ١. هل يحدث طعن في الشيكات بعد فتح ملف تنفيذ؟ وهل هناك نماذج لأسباب الطعن أو الرفض؟ ٢. بعض الشيكات تعتبر رأس مال وبعضها تعتبر أرباح. هل يحق للطرف الثاني رفض الوفاء بالوعود والطعن بشيكات الأرباح؟ ٣. حسب علمي، صاحب الشيكات لديه أموال وأملاك وحدث تنازل لعدم تسديد الأموال. متى ينظر القاضي لآخر التنازلات من أملاك صاحب الشيك والمدة؟ شكرًا مقدمًا!

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.

With the introduction of the new procedures for obtaining a power of attorney (POA) remotely in the UAE, after it was mandatory to appear in person in front of the notary public as a global rule to ensure the identity and intention of the person requesting a POA, we put between your hands this brief guide for how you get it done.

There is an execution against me in the UAE; what should I do? How do I cancel the arrest warrant and summons, and how do I deal with the travel ban? Dear readers, we present this simplified article, in which we explain the implementation procedures briefly, how the defendant can deal with them, and the options he can take to enforce the judgment smoothly while decreasing the damages of implementation as much as possible.

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 law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.