Questions & Answers
Questions & Answers
3 available 3 • View allCan a shareholder in a company loan money to the company with interest?



3
Q: Can a shareholder in a company give a loan to the company, and expect an interest payment from the company - legally?
If not "interest", can there be an agreed fixed sum that the company will pay the shareholder specifically for providing this short-term "loan" to meet the company's working capital requirements?
The point to note is that it's not just any individual giving money to the company, but actually a shareholder "loaning" money to the company for an expected monetary return.




Dec 21, 2022
2293
Are individuals allowed to lend money on interest?


2
Q: Dear sir/madam,
A friend gave me a personal loan for which I gave a security cheque. After reconciling accounts, I was supposed to get the security cheque back.
Instead, he wanted interest, and when I refused, he put a date on my security cheque and deposited the same without my knowledge.
What is the best course of action?



Aug 1, 2022
412
Is it legal to give loans to friends from the company by its owner?
2
Q: Hi,
I have a company in Dubai.
Can I give a loan to my friends from my company?
This is a personal loan and without interest. Also, I need a loan agreement format.

Oct 8, 2019
997
Legal blog
2 available 2 • View allImportance of Corporate Governance and its Basic Principles 13
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.
Jun 26, 2019
3110
Breach of Trust and Debts as the Base of Corporate Crime 1
This article intends to give a brief idea of corporate crime, how it happens in the corporate world, the relevance of choosing the right legal action and mechanism.
Mar 26, 2017
1307
Laws & Regulations
4 available 4 • View allFederal Law No. (2) of 2015 On Commercial Companies 15
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.
Mar 25, 2015
29540
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
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.
Sep 7, 1993
33024
Federal Law No. (4) of 2002 On the Incrimination of Money Laundering 1
The law defines the crimes related to money laundering, commitments and the jurisdictions of the governmental authorities, and the sanctions against perpetrators of money laundering.
Jan 22, 2002
1806
Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
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.
Dec 15, 1985
148427

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1590 1590 answers •
View allHow can I reverse the Bitcoin scam transation if I just lost everything in a flash loan attack? 0
DeFi was going to be the future of finance, open, trustless, unstoppable. I was completely on board, planting yields like some kind of digital Johnny Appleseed.
My collateral secured with Bitcoin was humming along on my favorite lending platform, earning me passive income while I slept. In came the flash loan attack.
One moment, I had six figures securely staked; the next, my positions were liquidated at the speed of regret. My loans, my collateral, my well-thought-out portfolio, poof.
Panic came faster than an Ethereum gas spike. I scanned Twitter, hoping it was FUD. Not a chance. Smart contract compromised. Funds stolen. The protocol team acted swiftly to do something, but damage was already done.
Apr 7, 2025
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Am I allowed to wear a burka during the divorce hearing at the family court? 0
Hello,
Am I allowed to wear a burka during the divorce hearing at the family court?
Apr 16, 2025
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Can I use my husband's case number to get information about his exit date? 0
Hello,
I have my husband's case number. Can I get information about his exit date using the case number?
Fujairah Jail.
Apr 16, 2025
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If an employee is terminated due to poor performance, is he eligible for compensation? 0
Hi,
For the private sector, if an employee got terminated due to warning letters for poor performance issued to him, is he eligible for a 1-month compensation salary?
Apr 15, 2025
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What to do if the bank filed case on me using security cheques and executed travel ban? 0
The bank filed a case against me using security cheques and executed a travel ban from Dubai Courts.
Apr 15, 2025
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3194 3194 answers •
View allMy tenant was supposed to vacate as per the contract. Can I rent the property to another tenant? 0
Good morning.
My tenant was supposed to vacate the property on 15th April 2025 as per the contract.
Now he is not answering the phone, and the property is still in use.
Please guide the way forward. I have already rented the property to a new tenant.
Apr 16, 2025
16
How can we recover a salary advance to a new employee if he fails to come to duty and uses alcohol? 0
As the HR manager of a company, I have issued a salary advance to the employee. Upon joining, he failed to go to duty and used alcohol daily in the camp.
I have a signed thumb-impression cash receipt. What options do I have to recover the AED 7000 advance paid to the employee?
Please help.
Regards,
B.
Apr 16, 2025
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Am I allowed to wear a burka during the divorce hearing at the family court? 0
Hello,
Am I allowed to wear a burka during the divorce hearing at the family court?
Apr 16, 2025
37
What countersuit can be filed against an employer for a false absconding case? 0
Hello,
What countersuit can I file against an employer who filed a false absconding case against an employee?
Apr 15, 2025
47
Is a bounced rent cheque case considered a criminal record for U.S. visa applications? 0
Hello,
My rent cheque was bounced, and my landlord filed a case against me in Sharjah Court. I received a fine of 2,000 AED, which was later reduced to 1,000 AED upon appeal.
Does this case count as a criminal conviction under UAE law, or was it handled as a civil matter?
If I apply for a U.S. visa, will I need to submit court records under the requirement for applicants with past convictions?
Apr 15, 2025
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207 207 answers •
View allDo I have to pay the value of training to the company in case of terminating the contract? 0
Salam,
My company has filed a complaint against me in MOHRE related to training fees.
This is the clause mentioned in my contract:
"The Second Party shall be obliged to pay back the value of the training (which is estimated at an amount of 10000 AED) when they terminate the employment contract based on their own free will (within One Year) from the date of commencement of their contract, without prejudice to the First Party's legal or contractual obligations. (the amount agreed on for the value of the training period must be commensurate with the employment period of the employee)"
My question is:
1. I served 11 months in the company. Can they demand the full 10,000 or it should be less due to 11 months (as per the last line of the clause)?
2. I didn't even get training from the company. I learned normally by working on projects with seniors. No training session was conducted for me. Should I still have to pay?
My case is in MOHRE.
Thanks
Nov 13, 2024
244
Can I apply for Amnesty 2024 with a bounced cheque and credit card debt? 0
Hi,
Amnesty 2024 has just started, and I really want to apply for it, but I have a company bounced cheque and personal credit card debt.
Is there any solution to avail of the amnesty and legalize my status? If yes, what is the step-by-step procedure?
Thank you to those who can enlighten me on this question, and God bless us all!
Sep 2, 2024
970
How can I resolve a travel ban with an expired passport and a bounced check case? 0
Hello,
I have a civil case for a bounced check and a travel ban. My passport has expired and can only be renewed in my home country.
Due to the travel ban, it is not possible to exit and renew the passport. With an expired passport, I can't work.
What are the options in this situation? Can my wife take this case and start paying in installments so that I can go to renew his passport and come back?
Thank you!
Jun 28, 2024
163
I have an unpaid credit card in the UAE and I will be traveling to Qatar. Will I be arrested? 0
I have an unpaid credit card of approximately AED 45000 in the UAE.
I will be traveling to Qatar due to work.
Will I be arrested in Qatar?
Jun 21, 2024
147
Requesting additional fees due to cheque postponement. What should I do? 0
Good day,
I requested the lessor to divide my upcoming cheque into two payments instead of the full amount on the 1st of December. I paid 50% on 1st December, and the second payment was scheduled for 30th December.
However, they considered it as a cheque postponement and asked for an additional fee.
Upon reviewing the contract, I found point number 8 states that a cheque postponement request will be subject to management approval, and it doesn't mention any extra fees—just approval.
Is this normal, and should I pay for it, or not?
Please help!
Dec 19, 2023
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37 37 answers •
View allI left Dubai on an outpass. Do I have a travel ban? 0
Dear Sir/Madam,
I have lived in Dubai for 5 years. I left Dubai in November this year on an outpass to return to London, UK, for a family emergency.
I owe 15,000 AED for overstaying fines, which I plan to pay when I return in January 2024. I still have a valid Emirates ID. How do I go about this?
I was told that I may have a possible ban. Is this true, or is there a process around this?
Can I pay my fine on re-entry at DXB, or can a lawyer efficiently sort out this process as I need to return to Dubai next month in January?
Dec 20, 2023
941
UAE woman seeks escape from mental torture at home, can she take her brother? 0
Dear Sir/Madam,
I am a 21-year-old female residing in the UAE. I have a job and am capable of supporting myself. I want to move out of my family's home because I am experiencing mental torture, and I no longer wish to live with them.
I have a 13-year-old brother who does not attend to school due to my parents.
Is there a way for me to move out of the house with my brother?
Dec 18, 2023
107
A company failed to deliver the promised freelance visa. How can I get a refund? 0
Dear Sir/Madam,
I paid money to a documents clearing company in Dubai to process a freelance visa for me. After receiving payment, they kept delaying and didn't even start the process.
Doubting their intentions, I have demanded a refund of my payment, which they are now delaying as well. They keep promising they will do it in a day or two but are not keeping their word.
I have payment proof in the form of an invoice issued by them and proof of the refund request in a WhatsApp conversation, where they repeatedly say they will do it but have not followed through.
What action can I take against them to recover my money?
Dec 18, 2023
236
Is the absconding ban a lifetime ban or a temporary ban? 0
Dear Sir/Madam,
If a company files an absconding case against an employee outside the UAE:
a) Is the absconding ban a lifetime ban or a temporary ban?
b) Does the absconding ban also expire automatically with the period of a labor ban or immigration ban?
Dec 18, 2023
1470
What procedures should an LLC follow to file for an outstanding payment? 0
Dear Sir/Madam,
What procedures should an LLC follow to file for an outstanding payment?
What steps should an LLC take when filing?
In the case of a legal notice for outstanding payment, which sections of the law should be mentioned?
Nov 30, 2023
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34 34 answers •
View allCan I evict my tenant in one year to change the tiles in the whole house? 0
Dear Sir/Madam,
Can I ask my tenant to vacate the premises in one year starting immediately to change the tiles in the whole house?
The property has been rented since 2017 and needs a facelift. The current contract ends in February 2024, and we are looking to send a notice of rental increase before 90 days.
However, we are sure that we want to make some changes around the house. These are not structural changes, but much-needed changes.
What is the process and eligibility?
Also, if RERA agrees, should we then renew the contract for 9 months, since the one-year notice would end in 9 months from February 2024?
Oct 27, 2023
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Can I apply for a golden visa during my notice period after resigning? 0
Dear Sir/Madam,
I want to know if I can apply for a Golden Visa despite having resigned and currently serving a notice period.
Mar 6, 2024
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Lived in Dubai in 2009, couldn't pay credit card debts. Can I return now? 0
Dear Sir/Madam,
I was living in Dubai in 2009 and using some credit cards that I was unable to pay due to some problems.
Now, in February 2024, can I enter Dubai again?
Please guide me!
Feb 29, 2024
544
Responsibility for supplier payments in an LLC company – manager or partners? 0
Dear Sir/Madam,
I am a partner of an LLC company with a 33 percent stake in mainland Dubai, along with two other partners who have equal shares.
I just want to know if I will be responsible for any payment liabilities of suppliers, or if it will be the responsibility of the company manager, as I am not actively involved in the business.
Mar 1, 2024
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Ongoing labor case: Can I renew my tourist visa and exit before it expires? 0
Hi,
I have an ongoing labor case, but my tourist visa is about to expire on December 25.
Can I renew my visa and exit?
Dec 22, 2023
136
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