Questions & Answers
Questions & Answers
3 available 3 • View allSafeguarding the interests of a partner not involved in operation

2
Q: I have a 5% partnership in a business (LLC) which is operated by another person who holds a partnership of 44% and the rest 51% is UAE National's share (as required by law). I also have a Partner's Visa from this company.
As I am not involved in any decisions or operations of the company, how can I be safe without any risks if the company gets involved in any legal issues like any huge fines for any other irregularities?
Will I be liable to pay if there are any fines? If yes, then how much would I be liable to pay? How much percentage would be my Share? Can I make some kind of contract to safeguard myself?


Jul 11, 2020
585
The responsibility of a partner in a limited liability company
3
Q: Hi Sir,
I am a partner and I have a partner visa in one of the courier companies in Dubai. Currently, I stay outside Dubai in a GCC country, I hold a 25% share in the company.
We are 4 partners; 2 inside Dubai and 2 outside. The company was established in 2019; it has been 1 year now and the partners in Dubai are showing a big loss.
They took a loan from some investors without our concern and they have a big credit from the customers. They utilized the customers' money.
Now, I need to get out of this mess as I was not involved and they were not sharing any updated records.
Both Dubai partners are MD in the Memo. I am afraid to come to Dubai as they have asked me to leave my share after paying the loss they have to some other investors.
I am afraid to come to Dubai to discuss as the company sponsor is in touch with them.
They can put me in trouble in order to get my share.
Please advise!

Feb 4, 2020
2840
The liability of partners when the company defaults in making payments
2
Q: I am a partner in an LLC company that has faced many labor cases and judgments by the court.
In the current situation, the company is not able to pay, will there be any travel ban on the partners?
Thanks!

Jan 4, 2021
548
Legal blog
2 available 2 • View allAn Overview of the Legal Framework for Entrepreneurs in the UAE 4
Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.
Mar 14, 2017
6385
What Can I Do If I Have a Dispute With My Joint Shareholder? 5
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.
Mar 24, 2020
5953
Laws & Regulations
2 available 2 • 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
29596
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
33082

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