Can a local active partner take over a company against the wishes of a non-local partner?

Dear Questioner,

No, this action is illegal.

Thanks and Regards,

Dear Questioner,

We need to check the MOA of the company and any side agreements signed with the non-local partner.

Please share the same with us via email so we review and update you on the next steps.

As per UAE law, without the consent of the other party, they cannot overtake it.

Hi,

No, not at all!

Taking over a company from a local or a non-local is completely illegal. Locals have no advantage over non-Emiratis in the eyes of UAE laws.

The non-local partner can take action and sue his partner for his rights in the company as well as compensation for all damages inflicted.

For more information, please contact us on WhatsApp.

Dear Questioner,

Thank you for reaching out to me with your inquiry regarding the potential takeover of a company by a UAE local active partner against the wishes of other non-local partners.

In the United Arab Emirates, corporate matters, including company takeovers, are governed by the laws and regulations set forth by the UAE government.

Generally, the rights and obligations of partners in a company are outlined in the company's articles of association and relevant legal documents.

Regarding your specific question, whether a UAE local active partner can legally take over a company against the wishes of other non-local partners depends on various factors, including the provisions outlined in the company's articles of association, shareholder agreements, and the applicable UAE laws and regulations.

While UAE law generally prioritizes fairness and protection of the rights of all partners involved in a business entity, there may be circumstances where certain actions, including takeovers, could be permissible under specific legal provisions or if supported by a valid legal basis.

To provide you with a more comprehensive answer and to better understand the specifics of your situation, I would recommend scheduling a consultation.

During our discussion, we can review the relevant legal documents, assess the specific circumstances surrounding the potential takeover, and explore the available legal options.

Please feel free to reach out to me via WhatsApp or phone to schedule a consultation or if you have any additional questions.

I am here to assist you and provide you with the legal guidance necessary to address your concerns effectively.

Dear Questioner,

The Emirati partner has no right to take any action in the company’s register except with the written approval of the other partner.

For further inquiries about your topic, you can reach our office or contact us on WhatsApp or email.

This depends on the type of company, the articles of incorporation, and the shareholders’ agreement, in addition to any partners’ rights according to the internal agreements between the partners

We can help you ensure your legal rights as a non-citizen partner and provide legal solutions according to your situation.

We offer you free legal advice by contacting us via WhatsApp.

No UAE law would support unjust actions, and your stakes in the company remain in accordance with the mutually agreed-upon contract.

Dear Questioner,

In the United Arab Emirates (UAE), the legal framework regarding business partnerships and company ownership is primarily governed by Federal Law No. 2 of 2015 concerning Commercial Companies (the "Companies Law") and its amendments.

Under this law, the rights and obligations of partners in a company, including local and non-local partners, are generally governed by the terms of the company's memorandum of association and any shareholder agreements.

In a limited liability company (LLC) in the UAE, which typically involves a local Emirati partner and one or more foreign partners, the local partner is required to hold a minimum ownership stake (usually 51%) as per UAE law.

However, the specific rights and responsibilities of partners, including the ability to take over a company against the wishes of other partners, would depend on the terms agreed upon in the company's founding documents and any subsequent agreements.

Here are some key points to consider:

1. Memorandum of Association (MOA):

The MOA of a company typically outlines the rights, duties, and powers of partners, including matters related to management, decision-making, and transfer of shares.

If the MOA includes provisions that grant specific rights or authority to one partner over others, such as the ability to take over the company or force the sale of shares, then those provisions would govern the situation.

2. Shareholder Agreements:

In addition to the MOA, companies often have shareholder agreements that further define the rights and obligations of partners.

These agreements may address issues such as management structure, decision-making processes, dispute-resolution mechanisms, and conditions for the transfer of shares.

If the shareholder agreement includes provisions related to change of control or transfer of shares, those provisions would also be relevant.

3. UAE Company Law:

The Companies Law provides a legal framework for the establishment, operation, and governance of companies in the UAE.

While the law sets out certain requirements and procedures for companies, including provisions related to shareholder rights and protection, it also generally respects the principle of freedom of contract, allowing parties to agree on their own terms subject to certain legal limitations and public policy considerations.

4. Legal Recourse:

If a partner believes that their rights have been violated or that actions have been taken against their wishes in breach of the company's founding documents or agreements, they may have legal recourse through the UAE courts or alternative dispute resolution mechanisms.

The specific legal options and remedies available would depend on the circumstances of the case and the applicable laws and agreements.

Overall, whether a UAE local partner can take over a company against the wishes of other partners would depend on the specific terms of the company's founding documents, shareholder agreements, and applicable laws.

It's essential for partners in a company to carefully review and understand these documents and seek legal advice if they have concerns about their rights or obligations.

Hello,

This action is illegal. However, we need to check the company MOA for any agreements regarding the same.

If you'd like, we can provide you with the service.

Please share your WhatsApp number to proceed.