Q: I would like to ask a question. If there is a company with limited liability between three partners, can any of the partners remove any employee from the company, such as the director of managers, the implementation manager, the director of the hall, any other manager or any other employee without the consent of the other partners?

Q: Dear Salah, I was a partner in one company in which I sold my shares and left the MoA/company on 4th Jan'18. One of the employees whom I recruited wants to leave the company now and the present owner is not cancelling him. The employee joined the company on 1st Oct'17. But his resident visa was not stamped. Till today his resident visa has not been stamped. This employee desperately wants to leave the company. What can the employee do? He did visit the labour court but his case was closed as the present partner promised to pay all his dues and cancel his visa in front of the labour officer. Should the employee re-open the case? Will it have any implications for me? What best course you advise for the employee now as he desperately wants to go home, but he wants to come back to the UAE with some other company?

Q: Dear Naser Could you please clear my legal doubt? If a person with no power of attorney in an organization signed an agreement with the other party, can this be considered as a binding agreement in case of arbitration or filing a case in the courts of the UAE as per the UAE law? Thanks, Mohamed

س: السلام عليكم، لدينا بالرخصة التجارية الموجودة حاليًا عدد 2 مدير مدرجين بعقد التأسيس، ولكن في الواقع كان مدير منهم فقط مسؤولاً رئيسيًا عن إدارة الشركة وتم عمل رسالة داخلية بيننا بذلك ومختومة بخاتم الشركة وتم التوقيع عليها من الطرفين. في هذه الحالة، علمًا بأن الشركة ذات مسؤولية محدودة، مَن المسؤول أمام القضاء عن إدارة الشركة؟

س: نحن ثلاثة شركاء والشريك الثالث يملك ٤٠٪؜ ومُسجَّل بعقد التأسيس بصفة مدير للشركة. رفض التجاوب معنا نحن الشركاء وأخفى جميع أوراق الشركة وأغلق مكاتب الشركة ولا يرد على جواله. ما الإجراء المتبع في ذلك؟ وهل نستطيع إعلان هروبه وعدم التعامل معه في الصحف؟

س: ما مدى مسؤولية الشريك المدير في الشركات ذات المسؤولية المحدودة عن ديون الشركة والدعاوى القضائية المرفوعة ضد الشركة؟

س: أنا مدير وشريك في شركة ذات مسؤولية محدودة. حتى الآن ليس هناك أي ديون أو مستحقات على الشركة. أريد أن أخرج نهائيًا من هذه الشركة وإثبات أنني خرجت بحيث لا تتم محاسبتي على مستحقات على الشركة فيما بعد. لا أريد رأس مالي من الشركة. يمكنني التنازل عنه للشركة أو لأي شريك. الشركاء غير متعاونين وبعضهم خارج الدولة حاليًا وغير معلوم موعد العودة. هل يمكنني إتمام ذلك من تلقاء نفسي؟ وكيف أحمي حقي القانوني من أي مساءلات مستقبلاً؟

It is the first article in a series of articles written by the author to give a better insight to the readers about the corporate governance practices under the best practice principles and the UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on the UAE regulatory framework on corporate governance.

It is the second article in a series of articles written by the author to give a better insight to the readers about the corporate governance practices under the best practice principles and UAE legal system through innovative suggestions of its implementation for your organisation. Next series will be on Corporate Governance for Non-listed companies.

This is the last article in series of articles written by the author to give better insight to the readers about the corporate governance practices under the best practice principles and the UAE legal system through innovative suggestions of its implementation for your organisation.

The UAE government has announced important changes to the federal Commercial Companies Law, the most significant is related to the foreign ownership of mainland companies. This will grant foreign investors the full ownership of share capital in companies carrying out certain activities specified to that effect by the competent authorities. This means that foreign investors’ shares will not be limited anymore to a maximum of 49% like before, but can be up to 100% instead.

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.

This Decree sets the rules and conditions for the termination of fixed-term (limited) or unlimited (not term-bound) employment contract between employer and worker in the United Arab Emirates.