Q: I run an architectural firm in London, UK. One of our clients is a property broker based in Dubai who also has a UK based company that was set up specifically to pay our fees. He is the director of the UK company as well as the Dubai company. His company is refusing to pay us £12,000 that has been owed for work we completed over 12 months ago. Is it possible to lodge a claim against him personally in Dubai as I have a feeling he will just shut down his UK company if I pursue it through the UK courts? If so, what is the process and how much would the legal and court fees be? We have a contract signed by him, but on behalf of his UK company, and a lot of correspondences between us and his company trying to recover the money.

Q: Sir/Madam I am a banker and I frequently have enquiries from many of my clients for doubts on bounced security cheques and how to find out if any case has been filed on them. My question regarding this is can I refer them to any lawyer or law firm on a commission basis as the lawyers and law firms will be of help to them? Is that permissible to refer to such?

Q: Good morning. An American company is working as an advisor for the Dubai government. The company has got employees to sign a non-competition clause document, prohibiting them from working for the same clients for a period of 1 year. Now, employees resigned and might work directly or indirectly with the same clients. The company is threatening to sue the former employees for non-compliance with that clause and make them obtain the company's legal authorization to do such work. Can you please advise the level of legality and also what is the appropriate next step?

Q: We are a reputed multi-speciality hospital in Abu Dhabi. Our hospital invited bids for a yearly contract to provide medical services. We got several bids from various companies. During the evaluation process, we found that a company for Medical Supplies in Abu Dhabi does not have the proper license to practice this business or to provide these services. Their license is fake, the services not listed and this company is practising the business activities without a proper medical license. Our evaluation team requested their Chairman & Director to provide us with the business license copy, but they denied to do this. The company is playing with the life of the innocent people by committing this crime. How do we file a complaint regarding this? And also, how about filing a case against those who are working with the company?

Q: Dear Sir/Madam, Is there a path to initiate some sort of investigation by relevant authorities on a company that may have committed fraud by falsifying positive P&l reports in order to obtain loans from a bank? Loans have been used to finance construction projects. The company has in fact been making losses for over six years & directors/owners have used operational cash to finance down payments & repayments, instead of using their own capital. In the process, they owe millions to suppliers and also 100s of thousands to staff/workers as they have been constantly delaying payment of salaries going back 3 years & not paid full salaries to everyone for 9 months. They have been showing/submitting financial reports showing losses as proof/reason for their inability to pay. Is there a way to combat this kind of deception/fraud?

Q: Procedures for UK business company to sue Dubai client for money.

س: السلام عليكم، لدي مشروع تقني من ابتكاري وأنا صاحب الفكرة حيث أنني أبدعت اختراعًا علميًا وتم اختباره عمليًا ونجح. حصلت على جهة وافقت على تمويلي بشرط دخولهم معي بصفة شريك بنسبة تقارب 50% في كل شيء عدا الفكرة. اشترطتُ عليهم مبلغًا محددًا يُدفَع دفعة واحدة ولكنه ينقسم إلى قسمين: 1. %60 يُدفَع نظير دخول شراكتهم معي أولاً. 2. %40 نظير إنشاء الشركة وما يندرج تحتها من رخصة وإجراءات إدارية ومواد وموظفين بالإضافة إلى تنفيذ فكرة المشروع بشكل أوسع، حيث أن الـ40% تعتبر رأس مال الشركة وأحد الأصول فيها، أما الـ60% فهي لشراء حصتهم في الشركة فقط ​لا غير. جهة التمويل وافقت على شرطي ولكنها اقترحت أن يتم دفع الـ%40 أولاً ويصبحون شركاء معي ويطّلعون على كافة التفاصيل التقنية (عدا الفكرة)، والـ%60 سيضعونها عند "طرف ثالث" حسب قولهم أنه إذا نجحت الشركة في منتجها فسيقوم الطرف الثالث بتحويل الـ%60 إلى حسابي. هذا يعني أنني لن أستفيد من المبلغ الثاني لأشهر طويلة، بينما هم سيستفيدون من الشراكة واتخاذ القرارات معي ولكني سأكون متضررًا. أرجو التكرُّم بتنويري برأيكم القانوني بشأن مقترح جهة التمويل! ولكم جزيل الشكر!

Q: Hi, Please note that I am the business owner of a Free Zone company (Ajman, UAE). I was successfully running the business for the last 3 years. Unfortunately, one of my ex-employees who left us 6 months back has made access to our free zone portal using our password from outside, downloaded some employment contracts, payrolls and sent a big list of false allegations against me and my company to defame us and spoil the reputation of the company. The ex-employee has sent these messages through his personal Whatsapp number to the COO of our USA-based buyer. He sent all these documents and made false allegations about me, my staff, and my family in person to defame me in front of our prime US customer. A team member of the US buyer has emailed me and Whatsapped me these details to do an enquire about the facts. Is there anything I can do legally to ex-employee? All I have is the Whatsapp messages and emails from my buyer regarding these things. The ex-employee is running his business in Dubai.

In view of the fact that the manager is primarily the point of reference for the company in the business streets, he is generally authorized by a power of attorney provided by the shareholders of the company or via the MOA of the company. In certain cases exceeding the powers given to the manager may make the manager, or the LLC itself, liable, depending on the nature of the manager’s actions.

The law promulgates UAE Civil Procedures Code (Civil Procedure Law) which governs civil procedures in the United Arab Emirates, including the prosecution before the courts, litigation and execution.

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.