Limited Liability Company can be dissolved. We will be having a discussion on the procedures of dissolving a Limited Liability Company. Certain rules need to be followed while dissolving a Limited Liability. Certain rules are defined by the Law. It can all be consulted by Emirati Advocates to get the complete procedure. First of all, Company should be dissolved as per the expiry period mentioned in the Memorandum and Article of Association.
- When the expiry period comes LLC is dissolved, unless there are certain conditions.
- If the operations are kept continued then the LLC will not be considered dissolved unless there is special resolution is passed by the partners.
- If the major purpose of the company is not kept the same, then the company is considered dissolved.
- When there is a loss of most of the funds or almost entire capital, makes it the company generate no profit.
- When all the shares are transferred to partners but those shares are less than the minimum amount legally mentioned, within the period of six months from the date shares are transferred.
- When the LLC is merged as per the Law with another company.
- When there is an agreement made to terminate the LLC by the partners or when this is decided by the Court to dissolve a company e.g. court order.
- The other procedures are like, a dissolution draft is drafted, the liquidator is appointed, then Commercial Registration is performed in Dubai Economic Department. Then there is a News Paper publication in two major newspapers and followed by a few other steps. If nobody comes after the newspaper publication then the amount in the company/shares can be kept by the owners. Article 304 is the Article to understand the right definition of this process. Better to contact Lawyers or Legal Consultants to understand the process and to perform the process. It must be kept in mind that always a valid resolution should be taken.
This is recommended by the experts that before taking any legal action, one must book the consultation session and ask the lawyers/legal consultants to provide the legal details and legal solution. The most seasoned people can be able to perform such tasks on their behalf, but if lawyers are consulted or hired to get the job done then it will create a big difference.