Missing business partner since 2003. What to do about his share in the LLC?

Dear questioner,

We may need to get a petition from the court if the partner is not reachable for transferring the shares, or else you will face legal complications.

Even if the partner left, their 25% ownership likely remains legally valid unless there's a formal transfer or agreement in place.

Simply leaving doesn't automatically forfeit their shares. If you need our assistance on your matter, kindly share your WhatsApp number.

Dear Questioner,

I understand the challenges you are facing regarding your LLC partnership. Below is a detailed response to address your concerns:

1. Status of the Partner:

Since the partner left the company and has been untraceable for over two years, you can pursue legal steps to remove them from the LLC. Under UAE law, a partner’s absence or inactivity does not automatically dissolve their ownership unless formal procedures are followed.

2. Removing the Partner:

You can initiate the removal process through one of the following methods:

- Mutual Consent: If all remaining partners agree to remove the absent partner, file a signed notice of intent with the Registrar of Companies and amend the partnership agreement accordingly.

- Court Intervention: If mutual consent is not possible or if the partner cannot be contacted, you may file a petition with the court to remove them based on valid grounds, such as abandonment of responsibilities or failure to fulfill partnership obligations.

3. Steps to Follow:

- Hold a general assembly meeting to document the decision for removal.

- Submit required documents, including proof of absence and justification for removal, to the relevant authorities (Registrar of Companies or court).

- Amend the trade license and partnership agreement once removal is approved.

4. Alternative Options:

If removal is not feasible, consider negotiating a buyout or transferring their shares to another party. This requires approval from all remaining partners and compliance with UAE regulations.

5. Recommendations:

- Legal Consultation: Engage a lawyer specializing in corporate law to guide you through the removal process and ensure compliance with UAE laws.

- Document Evidence: Gather all relevant documents proving the partner’s absence and abandonment of responsibilities to strengthen your case during legal proceedings.

- Resolve Outstanding Issues: Address any financial liabilities or regulatory requirements tied to the absent partner before proceeding with removal.

Should you require further assistance or legal representation, please let me know, and I will be happy to assist you further.

Best regards,

ABDUL WAHIED

To legally address the abandoned 25% share, you must petition the UAE court, as the partner's departure doesn't automatically transfer ownership.

This legal action protects the company from future disputes and ensures accurate records with relevant authorities.

Without a court-ordered transfer, your company may face legal challenges and operational hindrances. We will discuss the procedures in detail.

Kindly share your WhatsApp number to proceed.

Greetings,

Since your partner owns 25% of the shares, his departure does not automatically remove his ownership. To resolve this, you may need to:

- Check Company Records: Review the Memorandum of Association (MoA) and any agreements regarding partner withdrawal.

- Legal Action: If he is untraceable, legal procedures may be required to remove or transfer his shares.

- Government & Licensing Authorities: Depending on your company’s registration, authorities such as Dubai Economy (DET) or Free Zone authorities may have specific processes for inactive partners.

To explore your legal options and take the necessary steps, book a consultation with us today!

Hello,

Under the Commercial Procedures Law, you must send a notice to convene a shareholders' or partners' meeting.

Then, a resolution must be issued by the board of directors, after which you must go to court to request a court order to remove him as a partner.

According to UAE law, if a partner is absent and their whereabouts are unknown, you can submit a request to the relevant authorities to cancel their visa and transfer their share in the company following the legal procedures.

You may also file a case with the court to issue a ruling for the termination of the partnership due to their absence and lack of communication.

Feel free to contact us via WhatsApp for more details and specialized legal solutions for such cases.