Bankruptcy is not the solution for any business. You have invested a lot of money, so how can you let it all go in vain? Especially when you have established a company in the United Arab Emirates (UAE) and earned a good deal. The main reason for going bankrupt is the need for strong credit policies. You will have to chase debtors to get your money back. Failure to get your money from the debtor leads to financial issues. Let the lawyers in Abu Dhabi help you with bankruptcy issues.
Disputes amongst Shareholders
Suppose there is a dispute or disagreement amongst the business’s shareholders regarding financial commitments. In that case, it can cause the company to fail and reach closing, which means it will be bankrupt.
Who Can Liquidate the Company in the UAE?
The investors can decide about the company’s liquidation or imply a request from the bank. However, it should not be a problem as the UAE business laws already define the liquidation law. The difficult thing is to terminate the permit of the organization that is enlisted in the UAE business listings. Therefore, if you have a business in Abu Dhabi, you must seek legal advice from lawyers there.
Before signing an application, the organization should clear every pending charge with at least all the administrative associations, such as media communications, actions, and service charges, and close the organization’s records. In addition, an auditor will prepare a review report to determine the advantages and the risks that the organization poses. To learn more about, have a session with Abu Dhabi lawyers and legal consultants.
What is UAE Bankruptcy Law?
If you think that your company will have to go bankrupt, get help from the lawyers in Abu Dhabi to understand how the bankruptcy law affects your company in the UAE because certain companies fall under the bankruptcy law:
- The companies & other legal aspects of doing business in the UAE, organizations having their establishment under the Commercial Companies Law
- Organizations partially or fully owned by the UAE or individual Emirate’s legislature
- Free zone organizations that are not represented by existing liquidation laws
The Bankruptcy Law is a major development in the UAE’s indebtedness structure. The success of the new system will depend in the long run on how effectively people utilize the system practically. Exclusive reliance on the neighborhood court frameworks and the court-assigned specialists means that it will be crucial to establish good financial frameworks and training for the legal executive.
How to Stay Away from Liquidation?
The provision that ensured that creditors should refrain from being bound by proceedings commenced under the Bankruptcy Law may limit the effectiveness of the adequacy in the context of vast financing. Considering everything, the Bankruptcy Law addresses a stride toward a progressively sensible and universally inconsonant course, which should enable organizations in the UAE to manage money-related issues and, when conceivable, stay away from liquidation. Let lawyers in Abu Dhabi work for you.
Note: Information, can be obsoleted, old or not relevant with the reader. Therefore, we are not taking any responsibility. We suggest you to contact lawyers and legal consultants.
