Q: We have a partnership owned LLC company in Dubai - 60% shareholder in Qatar, 20% me & 20% another sleeping partner (we both are signatories in Dubai). Recently, the sleeping partner holding the same share 20% has accused me of fraud in the company. He stopped my monthly remuneration and asked me to give away my phone and car. Now, he went to telecom and complained about a missing SIM, the number I have been using for more than 5 years. I have been a working partner for more than 12 years, and now I am suddenly sitting in my office forcefully. How can this be stopped legally?

Q: I am a partner of a small civil company with a professional license issued by DED. My company has lost court cases wherein we have to pay 400,500 AED. These cases are in the execution stage. My company also has debts of 364,000 on our books. The company is not in a position to pay the proven debts in execution court or the pending debts mentioned in our books. I want to close the civil company. Question 1: Is it better for me to file for bankruptcy or file for liquidation of the company? (Or will the court immediately start one procedure if I register the other procedure?) Question 2: I heard that the court starts criminal proceedings automatically if bankruptcy proceedings are started. Is this true? What rules to follow to avoid criminal charges? Question 3: After the civil company is declared bankrupt, will the partners still have to pay the creditors (In the ratio of the shares they held in the civil company) because our company is not an LLC. Thank you for your help!

س: مرحباً، أنا مواطن ولدي رخصة تجارية (كافتيريا) عرضتها للبيع، فعرض علي شخص وافد شراءها على أن أكون أنا شريك 51% و 49% لثلاث شركاء. قام بتحويل الرخصة إلى شركة ذات مسوولية محدودة، واتفقنا على مبلغ معين سنوياً.  سؤالي هو، في حال أخذ الشريك الوافد قرض شخصي وعجز عن سداده أو هرب، فهل أتحمل أنا هذه الالتزامات؟ وكيف علي أن أحمي نفسي كوني جاهل بهذه القوانين وأضيع بين الكلمات؟

س: السلام عليكم، الأساتذة الأفاضل، يُرجى توضيح الفرق بين طلب فتح عريضة وطلب الإذن لفتح بلاغ حيث كلاهما يُقدَّم للنيابة ولهما نفس التفسير القانوني حسب ما فهمت، ولكن هناك اختلاف في الرسوم؛ فالعريضة (٢٠ درهمًا)، والإذن لفتح بلاغ (١٠٠ درهم). كما أن مدة إتمام المعاملة هي ٢٤ ساعة للعريضة ويومي عمل للإذن بفتح بلاغ. هل يجوز تقديم طلب فتح عريضة والإذن بفتح بلاغ لنفس الموضوع في نفس الوقت؟

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.

The provisions of this law On Evidence in Civil and Commercial Transactions (Law of Evidence) govern evidence in civil and commercial disputes in the UAE.

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.