I have booked an apartment with a developer in Ajman. Construction has not yet started but I have already paid about 50 per cent of the total value. I was not in the UAE and I thought the construction was in progress, as this is what I had been told by the developer. When I asked the developer for a refund they refused. This is not acceptable to me and I believe it’s against the law. If I go to court will I get a refund?
If you fail to reach an amicable solution with the developer, you have the right to serve an official notice to the developer through competant courts to request a refund. If the developer fails to respond to the notice, you can file a case with the court claiming your rights in addition to compensation on the basis that the developer had violated terms and conditions of the purchase contract. You will be able to refund all court fees from the counter party in case the court passes the judgement in your favour. Finally, Ajman Real Estate Law obliges the developer to open an escrow account. Such accounts guarantee that the amount paid by the buyer goes to that account to be paid for the construction only. Therefore, if you find out the developer didn’t deposit the money to the escrow account, you have the right to file a criminal case against the developer with Ajman Prosecution.
As per UAE company law, do I have the right as a partner in a Limited Liability Company (LLC) to request a board meeting? And what can be discussed in this meeting? My main concerns are the company’s financial problems and the audit report.
Article 90 - ‘Formation of the General Assembly and Inviting it to Convene’, mentions the following;
1) The Limited Liability Company shall have a General Assembly consisting of all the partners. The General Assembly shall be convened by an invitation from the Manager or the Board of directors at least once in a year during the four months following the end of the financial year of the company. The General Assembly shall be convened at such time and place as set out in the letter inviting to convene the meeting.
2) The manager or the authorised manager shall invite the General Assembly to convene upon the request of one or more partners holding at least one quarter of the capital.
Article 94- ‘Agenda of the Annual General Assembly’ states; the Agenda of the annual General Assembly of a Limited Liability Company shall include the consideration and decision-making in the following issues:
1) The Manager’s report regarding the activity and the financial position of the company during the ended financial year, the auditor’s report and the Supervisory Board’s report;
2) The balance sheet and the account of profits and losses and the approval thereof:
3) The profits to be distributed among the partners:
4) To appoint the managers and to determine their remuneration:
5) To appoint the members of the Board of Managers (if any):
6) To appoint the members of the Supervisory Board of (if any):
7) To appoint the members of the Internal Shariah Control Committee and the Shariah Controller if the company conducts its activity in accordance with the provisions of the Islamic Shariah.