We are six partners in a LLC (limited liability company) in Dubai. Due to issues with the manager, we decided to appoint a second manager, who will not be a partner. The current manager claims this is against the UAE companies law. Can we terminate the current manager’s services even if the duration of his tenure is not mentioned in the Memorandum of Association?
Article 235 of the Commercial Companies Law states that a LLC shall be managed by one manager or more, who shall be selected from the partners or otherwise provided that they do not exceed five. Managers shall be appointed in the Memorandum of Association, or in a separate contract for a specific period or without limitation. Article 236 states that if a manager is appointed in the Memorandum of Association without limitation, the individual shall remain in the company unless the Memorandum of Association provides for his removal. A manager can also be removed if most of the partners agree to do so, or by a court order.
Profit percentage
I have worked for more than three years in the sales department of a company in Dubai. My labour contract stipulated a monthly salary and 10 per cent of net profit from sales made by me. A month ago, the company terminated my services. When calculating my end-of-service benefits, the company informed me that I do not have the right to combine it with the profits. I was given the choice to accept gratuity or a percentage of the profit mentioned in my labour contract. Is this acceptable under the UAE labour law?
Under the UAE labour law, the questioner is entitled to gratuity in addition to the share of profit. If the questioner fails to reach an amicable solution with the company, he can file a complaint before the Ministry of Labour. If no solution is reached, the questioner can request the ministry to refer the case to the labour court to claim his dues.
Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.
