Questions & Answers - Legal Advice Middle East

Winding down an LLC company and the liability of the manager after absconding

Q: Hi there Michael, I am a 24% shareholder in an LLC wherein the other shareholders are our local partner with 51% shares and the partner who is listed as manager on the trade license with 25% shares. The manager has absconded leaving behind unpaid VAT and other debts that are well over 30 days due (up to a year). No proceedings by creditors have been filed against the company and the MOA contains a general POA in favor of the Manager. I would like to wind down the company without going through bankruptcy procedures. My understanding is that the listed manager of an LLC is personally liable for the Company`s debts. I need advice about the procedures required to wind down the company. I do not wish to go through bankruptcy procedures as the finances and management of the company were being handled by the manager. I am just the creative director of the LLC. Please advise as soon as possible.

Staying in a flat free of charge after employment termination due to COVID-19

Q: The contract of my apartment expires on June, 30th. At the same time, my employer did not extend the new contract with me. I am a Polish citizen (Europe) and because of COVID-19. I have no flights to Poland. Do I have the right to stay in my current flat for about two months longer free of charge or do I have to pay to the owner? If so, how much should I pay? If not, then how to do it? Regards,

Getting information from abroad on a person arrested in the UAE

Q: Hi My boyfriend was arrested on the 29th of July 2019, it`s almost a year now. We don`t know if he has been sentenced yet We also don`t know what to expect when he does get sentenced. He was caught with a small amount of weed. Where can we get more information? We are in South Africa and don`t have any connections in Abu Dhabi.

Making an employee redundant and offering his position to a colleague

Q: My position was made redundant on 1 April 2020. The company stated restructuring as a reason for that. I was given a termination letter along with 4 other colleagues being made redundant from their positions. Meanwhile, one of the 4 colleagues whose position was made redundant has been offered and accepted my position (nearly the same job title) with a higher salary than mine. I served 30 days` notice. The last working day was 1 May. Considering the above, do I have legal grounds to file a claim for an arbitrary dismissal? Regards,

مطالبة الزوجة الوافدة بالطلاق للضرر مع حفظ حقوقها

س: زوجي يعاملني معاملة سيئة مع العلم أنني متزوجة منذ ٧ أشهر. لا يعطيني مصروفًا ولا يعاملني معاملة حسنة؛ بل يشعرني أنني خادمة فقط. لا أستطيع الاستمرار وأريد الطلاق، مع العلم أننا أردنيين تزوجنا في الأردن. ماذا أفعل وما الخطوات اللازمة دون أن أفقد حقوقي؟ ألغى إقامتي وجعلني على إقامته.

Resolving dispute between company partners and accusation of fraud

Q: We have a partnership owned LLC company in Dubai - 60% shareholder in Qatar, 20% me & 20% another sleeping partner (we both are signatories in Dubai). Recently, the sleeping partner holding the same share 20% has accused me of fraud in the company. He stopped my monthly remuneration and asked me to give away my phone and car. Now, he went to telecom and complained about a missing SIM, the number I have been using for more than 5 years. I have been a working partner for more than 12 years, and now I am suddenly sitting in my office forcefully. How can this be stopped legally?

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Cancellation of property purchase and claiming refund without contracts

Q: I paid 90% of a property that was meant to be complete in 2011. The original developer crashed & ran out of money. No contract was signed but the new developer took over in 2017 and the project was completed in 2019. The new developer has a record of my payments and I have all receipts. I have not signed any new agreement with the new developer. When the project finished it was nothing like what was planned. Can I claim my money back?

The implications of missing the date specified on a promissory note

Q: Hi, Do you have the latest update on the promissory note as per UAE law? I searched in Google and found the latest update as of 2017. What are the latest changes and charges related to the promissory note? What are the implications if the client does not abide by the date specified on the promissory note?

Requirement of a special agreement in case of lending money to a friend

Q: Hi, I have lent money over a period of time to a friend (without any interest). I do have a simple payment agreement duly signed by my friend that sets out the amount to be repaid on a monthly basis. I would like to know if there is a template for such an agreement that safeguards my interests in case of default and that is valid under the UAE legal system. Would appreciate your advice and guidance.

Renting the property of the buyer by developer without approval

Q: After completing the full amount, I am currently suffering a lot with the developer company as they have rented my apartment without my approval just one month before my handover date. Until now I am trying to get the rental income but day after day they are delaying and every time they provide excuses they have deducted lots of money for management FEE and service charges advance payments, even as I have mentioned that the rent was done without my approval. Is there any way I can complain about such misconduct from the developer company? Please advise about my issue with the developer. I have purchased a unit in a project in April 2017 from an exhibition done by the developer in Oman. The developer sold me the apartment in Oman and they know that I am not a resident of the UAE and therefore do not have any bank account in the UAE and can never create a current account according to the UAE law without having a residence card. The developer asked me to provide bank cheques from a local bank.

Procedures of obtaining a trade license to sell goods online

Q: Can we sell imported goods with a free zone license online on Amazon and Noon locally?

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Need for a license to work as a freelancer in the UAE

Q: Hello, Are beauty home services provided by freelancers legal in the UAE (manicure, hair, makeup...etc.)? Does a freelancer require specific approvals, documents or licenses for providing home services?

Expected legal action in case of defaulting on a bank loan

Q: Hi I have a personal loan around AED 230000 in the UAE. I`m outside of the country. I have not taken the last 2 months salary of April and May and I can not pay the instalments. Now the bank started to ask for the payment. What will be the next step? Will they raise criminal case outside the UAE? Can I reschedule instalments? Please advise. M.

Is flirting with a married woman on Whatsapp a crime in the UAE?

Q: Dear Mr Elnaggar, I would really appreciate your help. What are the consequences of having a Whatsapp relationship with a married woman (with kids)? Only over Whatsapp, nothing physical. Her husband found out by reading her Whatsapp messages. If he decides to take it to the courts in Dubai, what are we looking at here? P.S. all parties here are Canadians. Thanks

What legal action can I take for delay in property handover?

Q: I purchased an apartment in 2017 with a completion date of Q4-2018. Till now, the construction is not complete. And based on the construction update, it will not complete in 2020. As per the agreement I already paid 50% of the amount and rest 50% is due on completion. As per the Default and Termination clause of the SPA, I sent the notice for termination on 5th Jan 2019. This clause clearly states that "If the seller has not served the completion notice within a period of 12 months from the anticipated completion date (unless the delay is caused by force majeure) and the purchaser has fulfilled all of the purchaser obligations under this agreement, the purchaser shall be entitled to send a written notice to the seller requiring the seller to complete the building works within 90 working days of receipt of the purchaser`s written notice. That time has elapsed and now I have to send the second notice as the remedial period of 20 days is also coming to an end. Please advise on the plan forward.

الإجراء القانوني المتَّبع حال عدم إنجاز المشروع العقاري في موعد التسليم

س: اشتريت شقة في دبي بتاريخ 25/03/2019. موعد التسليم المتوقَّع: الربع الأول من عام 2020. نسبة إنجاز المشروع 25٪ بتاريخ اليوم. هل توجد غرامة تأخير؟ وما الإجراء القانوني الواجب اتباعه في مثل هذه الحالة؟