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I need a legal analysis for a dispute between partners in an LLC in Dubai regarding company management and profit distribution
I'll analyze this case according to UAE law. Could you clarify each partner's share percentage, and is there an establishment contract that defines management powers and profit distribution mechanisms?
The first partner owns this 60% and the second 40%. The establishment contract stipulates joint management, but the first partner prevents the second from accessing accounts and hasn't distributed profits for two years
- Article 84 of UAE Commercial Companies Law No. 2 of 2015 obligates the manager to enable partners to access company books and documents
- Article 112 of the same law stipulates that profits must be distributed within 30 days of the distribution decision, and failure to do so is a violation
- Dubai Court of Cassation in Appeal No. 379 of 2019 Commercial confirmed the partner's right to access company records regardless of their contribution percentage
- Article 86 allows the aggrieved partner to file a lawsuit against the manager for any action that harms the company or partners
I recommend filing a lawsuit at the Dubai Court of First Instance to compel the first partner to disclose accounts and distribute profits. Based on Article 25(b) of the Civil Procedures Law, you can request the appointment of an accounting expert. The legal precedent in a similar case (Appeal No. 164 of 2018 Commercial) supports your position in this dispute.
Can a judicial custodian be appointed for the company during this period?
- Article 18 of UAE Evidence Law No. 10 of 1992 regulating judicial custody
- Article 254 of the Civil Transactions Law permits appointing a judicial custodian when there is a dispute over management of joint property
- Dubai Court of Cassation decision in Appeal No. 295 of 2020 approved appointing a judicial custodian in a similar case to protect partners' interests
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