Questions & Answers
Questions & Answers
 3 available 3 • View allSelling a share in a business without knowing its value


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!



Jan 29, 2020
847
Can an LLC partner sell their shares to a third party without other partners' consent?




Q: Dear Lawyers,
Can a partner in an LLC company (Dubai Mainland) sell their shares to a third party without the consent of the other partners?
If one partner wants to exit the company and the other shareholders are neither responding to this request nor giving permission, what is the way forward?
We have sent an email to the other shareholders notifying them of the intention to sell the shares, but there has been no response. Please advise.
Please advise!





+4
Aug 10, 2024
226
Proving partnership in a company without a written proof
Q: A friend and I have started a business in Dubai about 2 years back and I paid my share of the capital and expenses on that basis we'd be 50/50 partners.
The company was registered under an Emirati sponsor as per the local laws and regulations who holds 51% of the shares and my friend who holds the remaining 49%.
We didn't add my name to the application at the time thinking it would reduce the processing time. Till date, I have not seen any share or any profit on the grounds that we're not making much of it.
We have not signed any papers that can prove that I'm a partner in the business, but I have made 2 payments (about 90% of my total investment) through a bank transfer to the company's bank account.
To sell my share, would it suffice if I get him to sign on a paper that we are 50/50 partners and I contributed with X amount?
Should it be done at a notary and have it legally attested? Or should I have him sign a paper that I gave him an X amount as a loan?
Any other suggestions

Jan 6, 2019
2906
Legal blog
 3 available 3 • View allAn Overview of the Legal Framework for Entrepreneurs in the UAE
Over the years the UAE has become a centre of trade and commerce for the Middle East, thanks to its strategic location, excellent connectivity and extensive services to assist with all aspects of business. According to the World Bank's 2016 report, the UAE has ranked 31st in the global index of ease of doing business. This encourages more entrepreneurs to set up different kinds of business entities in the country.
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Importance of Corporate Governance and its Basic Principles
It is the first article in a series of articles written by the author to give a better insight to the readers about the corporate governance practices under the best practice principles and the UAE legal system through innovative suggestions of its implementation for your organisation.  Next series will be on the UAE regulatory framework on corporate governance.
Jun 26, 2019
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What Can I Do If I Have a Dispute With My Joint Shareholder?
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.
Mar 24, 2020
5937
Laws & Regulations
 2 available 2 • View allFederal Law No. (2) of 2015 On Commercial Companies
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.
Mar 25, 2015
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Federal Law No. (10) of 1992 On Evidence in Civil and Commercial Transactions
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.
Jan 15, 1992
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