Can a partner be removed by a majority vote of the remaining 75% shareholders?

Dear Questioner,

Under the Commercial Procedure Code, you are required to send a notice to convene a shareholders' or partners' meeting.

Subsequently, a resolution by the Board of Directors must be passed.

Following this, you must proceed to court to request a court order for the exclusion of him/her as a partner.

Hello,

I am Sakina Dickenwala from MBC Legal.

Dear Questioner,

This will depend on the Article of Incorporation regarding the removal clause.

We can assist you in reviewing the Article of Incorporation, advising you on the process until the removal is completed, transferring his/her shares to the existing shareholders, and updating the Article of Incorporation, Shareholder Resolutions, and Trade License.

You can book a consultation session through the portal. Alternatively, you can contact us via WhatsApp for immediate assistance.

Hello dear questioner,

To file a lawsuit to remove a partner from the company, a set of conditions must be met when it is not possible to resolve the dispute between the partners and the partner to be removed, and these conditions are as follows:

- The majority of partners agree to remove the partner from the company.

- There are justifiable and serious reasons that justify the separation of the partner.

- The partner rejected other partners' request to withdraw from the company.

For further clarification, please share your WhatsApp number.

Dear Questioner,

As per Union Supreme Court precedents, you can raise a case asking for the removal of a partner provided that you support your case with solid justification.

In such a case, if the court deems your justification reasonable, then the partner will be removed, and the remaining partners will have to pay him the value of his share on the date the case was registered.

For more information, please contact us on WhatsApp.

Dear Questioner,

Thank you for reaching out with your question regarding the removal of a partner in your commercial brokerage license issued by the Dubai Department of Economic Development (DED).

In accordance with the laws governing commercial entities in Dubai, the removal of a partner typically requires adherence to the provisions outlined in the company's memorandum of association and articles of association.

These documents often specify the procedures and conditions under which a partner can be removed, including any required majority vote.

Given that there are four shareholders, each holding a 25% stake, it is important to review the specific provisions outlined in your company's governing documents to determine the process for removing a partner.

If the memorandum and articles of association allow for the removal of a partner by a majority vote of 75%, then it is likely that such action can be taken.

However, it is advisable to consult with a legal professional who specializes in corporate law to ensure that any actions taken are in compliance with the relevant regulations and to mitigate any potential risks or disputes that may arise.

As an attorney with extensive experience in corporate law in Dubai, I would be happy to assist you further in understanding your rights and obligations as shareholders and in navigating the process of removing a partner from your commercial brokerage license.

Please feel free to reach out to me via WhatsApp or email to schedule a consultation and discuss your specific situation in more detail.