As a partner who loaned money to the company, should I sue the company or my partner?

Dear Questioner,

In general, if you have a loan agreement or other evidence to prove that the company owes you 2M AED, you may have a stronger case by starting a lawsuit against the company.

This will also allow you to obtain an acknowledgment of debt and a certificate of solvency, as you mentioned.

However, if you believe that the other 50% partner is responsible for the company's inability to repay the loan, you may also have a case against them.

In this situation, it may be beneficial to start a lawsuit against both the company and the other partner, as this will ensure that both parties are held accountable for the debt.

Ultimately, the best course of action will depend on the specific details of your case and the advice of a legal professional.

It is important to carefully consider all options and potential outcomes before making a decision.

Leave your number, we can help you.

Ezz

Badr Legal Consultant

Hello,

If your primary goal is to secure an acknowledgment of debt and potentially set up future actions against both the company and your partner based on insolvency issues, then suing the company may be advantageous.

Conversely, if you believe that your partner has personal assets worth pursuing and would prefer a more direct approach to recovery without waiting on corporate processes, then suing them directly could yield better results.

Kindly contact us for further assistance.

Greetings,

It is better to sue the company and the other partner together, so that you can obtain your full rights, and we are honored to help you in the matter and provide you with full legal support.

For further inquiries about your topic, you can visit our office or contact us via WhatsApp, phone, or email.

Dear questioner,

There are chances to file a debt recovery suit against the company; however, we need more details regarding the loan's default date and acknowledgments from the company regarding the payment.

Regarding recovery from the partners, it should be recovered from the profits they obtained from the company.

Kindly share your WhatsApp number so we can discuss the matter further and provide appropriate advice.

Dear Client,

You can only file a case against the company if it is an LLC. In the execution phase, you can try to take action against the manager and partners if the court accepts it.

If you want us to handle your case at a reasonable price, just contact us at [--------].

Best regards,

Hello,

I’m glad that you signed a loan agreement, which guarantees your legal rights.

From a legal point of view, we believe that understanding your legal status requires verifying documents such as the license, entity legal type, and loan agreement.

Accordingly, we will conduct checks to see whether the company’s license is still active. We will explain your current legal position and all possible legal solutions you can pursue, free of charge.

We act with honesty, and when we propose legal solutions, if you choose any of our services, we will consider your financial situation, and our charges will be much lower than the market rate.

For your protection, we will also sign an agreement and issue an invoice.

Hello,

As per your query, we need to know whether there is any local sponsor and the nature of the company—whether it’s a civil, LLC, partnership, etc.

If there are no assets in the company and you have provided the loan to the company, then the company will be liable, except in the case of an LLC where the manager might also be liable.

If it’s a civil company or sole proprietorship, the scenario is different.

Regarding bankruptcy and insolvency, you can proceed as a creditor and also based on the company’s MOA, especially if you are a partner in the license.

If the loan document allows you to directly open an executive writ, then you may proceed.

We need to check all your documents, such as the report, loan document, and bank records.

Please contact us by email at [-------] or call [--------].

Please provide us with details about the loan.

Is it part of the company’s capital (50%) and your percentage, or is it outside the company’s capital, and do you have a debt security for that loan?

Any lawsuit can be filed as long as there is damage to you due to the other party’s breach, so you can resort to the competent court.

Thank you for providing detailed information about your situation!

Based on the circumstances you've described, both approaches have their pros and cons. Here's a general overview:

- Starting a Lawsuit Against the Company:

Filing a lawsuit against the company would allow you to issue an acknowledgment of debt, which can later be used in the execution phase to issue a certificate of solvency.

This could potentially lead to the arrest of the other partner if the company is unable to pay. However, given that the company has no bank balances or assets, this route may prove to be more procedural without immediate financial recovery.

- Starting a Lawsuit Against the Other 50% Partner:

Directly filing a lawsuit against the other partner would immediately bring them into the execution process, potentially making it easier to recover the debt.

Since their name would be on the executive writ, you could hold them personally accountable for the portion of the debt, especially if they are in a better financial position than the company.

- Recommendation:

Given that the company lacks assets, pursuing a case directly against the other 50% partner might be the more effective route to ensure a quicker resolution and recovery of your funds.

However, this strategy would depend on the specific agreements between partners and any personal guarantees that might exist.

I suggest we discuss this further to tailor the legal strategy to your specific needs and to ensure we take the most effective action.

Please feel free to reach out to me directly via WhatsApp or phone at [-------], or email me at [-------] to set up a consultation.

It may be more beneficial to start a lawsuit against the company rather than the other 50% partner. This is because the company is responsible for the loan.

Contact Us on WhatsApp [---------].