Q: My company is located in Dubai as an LLC. We have two shareholders, 1. UAE national shareholder with 95% 2. A foreign shareholder with 5% The UAE national shareholder transferred this 5% shares to the foreign shareholder through a share sales agreement, which was notarized at the notary public in Dubai and submitted it to the DED to amend the trade license etc. This happened in 2014. But till this date, the foreign shareholder did not pay the value of 5% shares to the UAE national shareholder or to the company. Also, the foreign shareholder was not actively involved with the company's operation and as per Article 17 of the Commercial Companies Law: "2. The partner may not contribute in work rendered unless he is a joint partner. The contribution of the partner may not consist of his having reputation or influence." Under these circumstances, is it possible for the UAE national shareholder to request from the court to cancel the 5% shares of the foreign shareholder and transfer back to him?

Q: Hi, I want to get advice on what I should do with a company based in Dubai, which is not adding me as a partner even after payment of 100% my share money. I have even paid double by investing all my salaries of 16 months. I am out of the UAE now. Please advise. Many thanks.

Q: My husband was awarded shares in the company he works for. Now he is leaving and wants to sell them and the company refuses to acknowledge the fact that he holds shares even though it clearly states that he does in the 'Articles of Association'. What advice can you give to us? Thanks.

Q: I started a business with a partner (50/50 shares) who is managing the business, supported by my contributions to marketing and operations. After 1 year of business, I'm still not getting clarity concerning the collections and payments, etc. Money is often collected by my partner in cash mode instead of the bank. My partner keeps saying stay away from this and just focus on marketing and operation. Now I have decided to quit this business, but since there is no proper account, I'm not sure how much I should sell my 50% shares for. Kindly advise me on how can I come out of this business and how much I should sell my shares for!

Q: We have invested 20% as a partnership 20 years ago but on a mutual understanding basis, with no legal document. Now our partner wants us to move out and he will bring another partner. He agreed to pay a certain amount. He is asking for a written agreement that unless we are paid the full amount agreed, we shall not leave the company. My question is: Will this lead to any discrepancies?

Q: Someone offered me a partnership in a business. They will capitalize and finance the business while for me I will run it for them, 3 investors. They will give me 10% of the yearly profit, is this a good percentage? Then as for me to survive on a daily basis, they will give me AED 5000/monthly and this amount will be deducted from the yearly profit, it's like an advance payment from the yearly profit. is this a good offer? Hoping for some enlightenment.

Q: Dear sir/madam, I have entered into a 47/50 partnership with someone in Dubai. I spend most of my time abroad. When we needed money to invest in the business, we spoke every day. However, now that the company is active, he has hesitated to send me my share of the profit. Additionally, it has been more than two months since he has been responding to my calls. I only have his company WhatsApp number, which he uses for clients. I have been politely asking him to talk to me, open a company account or discuss the terms of profit sharing, but he is not available. Can I somehow get a legally binding meeting with him?

Q: Dear Lawyers, I was a partner in an LLC company for 6 months with a 33 percent share. I just sold my share, but my partner has not given me anything. I signed in good faith. I sent my investment in the beginning through a bank transfer. Can I claim this? I sent him a message on WhatsApp stating the amount due; he read it but didn’t reply.

An interview-format article covering the topic of the amendments to the company law in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

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.

The provisions of this law On Evidence in Civil and Commercial Transactions (Law of Evidence) govern evidence in civil and commercial disputes in the UAE.