Q: Hi, I would like to ask about the company, where I am working for the last 5 years. We are W.L.L. company and the local partner was a sleeping partner. The other partner was Indian and he took a loan from the bank on the company's name and used it for his personal use and drained it in other business. He increased the creditors and now he left the country. At this situation, the local partner comes to know about his intention of not coming back. Now, all the responsibility falls upon the local partner's shoulders. The company has creditors of around BD 140,000 / and a bank loan of BD 160,000/, which is impossible to pay by the local partner. For running business outstanding, mostly companies has cheques issued by the Indian partner (Local partner is not authorized to sign any cheque according to MOA), and the bank has guarantee papers signed by the local partner. Can you please advise how we can save the local partner and file a case against the Indian partner?

Q: Dear Sir/Madam, Effect of company manager issuing company check that bounces My civil company has two partners. Each partner is also the manager. The company took a loan of 260,000 AED from a friend. I want to return the loan but my other partner does not want to pay. What will happen if I issue cheques from the company account, they bounce, and the other party starts a cheque enforcement case against the company? Then each partner will pay the debt in the ratio of their shares. Will I be jailed or have to pay a fine due to signing a company cheque that bounced? My alternate method is to issue an acknowledgment and the creditor does Amr al Arida "performance order" case, but I want to reduce court costs.

Q: Hello Ludmila, My client is a civil works company. Just wanted to know which federal law is applicable for the company law governance. Thank you in advance.

Q: Hello, What are the key differences between a Limited Liability Company (LLC) and a Sole Proprietorship in the UAE?

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.

For entrepreneurs seeking to set up their business in the mainland jurisdiction of the UAE, this is a useful guide to know your rights and obligations.

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.

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.