Dubai: A group of businesspersons have been ordered to pay Dh3 million to their partner in compensation for damages he incurred on account of a reduction in his share of the company’s capital.
They were also ordered to restore his share of the company’s capital at 6 per cent. The ruling was issued by the Expertise and Disputes Settlement Department of the Dubai Ruler’s Court.
The commercial case was lodged by the claimant, asking the court to annul resolutions issued by the company’s general body that curtailed his share in the company’s capital from 6 to 2 per cent. The plaintiff had also pleaded with the court to order the defendants to pay him Dh4 million, plus his share of the company’s accumulated profits.
Hashim Al Qiwani, director of the department, said that commercial cases are mostly related to disputes arising between partners over corporate management or losses resulting from poor management or distribution of shares.
“In this case, the claimant filed the lawsuit accusing his partners of plotting with the company’s auditor in cutting down his share in the company from 6 to 2 per cent without his consent,” he said.
The court heard that the claimant established a brokerage company with the other partners. The company accumulated profits but the same were not distributed equitably among the partners.
The department assigned an expert to examine the case and all related documents, including financial statements, profits and fiscal reports. The expert found that the other partners increased the company’s capital through personal subscriptions following a resolution issued by the Securities and Commodities Authority asking companies to increase their capitals.
Al Qiwani said the department analysed the issues that led to the dispute since the founding of the company and the changes effected to the agreement regarding its establishment in terms of the partners’ shares before determining the claimant’s share in the company since its inception.
