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The local UAE sponsor is trying to claim half of my company... help..

18K views 10 replies 7 participants last post by  desertdude  
#1 ·
I recently purchased a transport company in Dubai, which I was hoping to add to the existing company I previously have. When I met the local who sponsored this company he seemed fine, so I went ahead with the deal, however shortly before we could draft new contracts etc he started claiming that the company license belonged to him and that on technical terms the company was his etc. I asked for him to be changed on the grounds that I required the sponsor from my other company. The request was put forward by the company manager through the courts however it never reached the local. Not soon later the local put forward a court case claiming he was owed profits from the last 4 years & that he is off equal partnership - the company documents stating he clearly is not. This case has been placed on hold for the next 2 months as this local did not deposit the requested money by the court of 50,000dirhams, so now I must wait on that.
- Now recently he has also managed to stop me transferring any trucks from the company via the RTA - stating he must be present, however he has changed all his numbers, address etc.

Any suggestions or help..
 
#2 ·
Only option is to get out ASAP, talk to him or get a "local" with more influence to get this guy to go away. In the "fair" justice system here, a GCC citizen beats you any day. This is a generalized statement but is true for most instances and this appears to be one of them!
 
#3 ·
I know its ridiculous the system is completely on his side. Ive tried meeting him, he was being overly greedy not even reasonable and now I cant even reach him.
Ive spent most of my savings buying this company and now am stuck, I cant leave it,have nowhere else to go mate. I am going to have to start looking for someone with some serious influence now but again the same problem, how to trust this person. Cheers for your post, lets just see what happens now. thank you again.
 
#4 ·
Money is only money, it's replaceable, don't fight what you can't win, why would a local with more wasta take your sponsor on? If he did, he'd want more than the original.

Forget it, accept it's gone, leave the country and make a living for yourself in another country that's not totally filled with charletons and rogues.

And yes, I DO mean the locals.
 
#5 ·
Andy Andy Andy, if I was so soft i wouldnt be here, iv got more gutts then that.
I appreciate the comment but seriously - its not gone til the fat lady sings - there aren't voices yet, i just want someone to recommend me someone who could genuimely help, if not, I plan to find a way. You take it easy :)
 
#6 ·
One local isnt going to stab another local to help out a western person. If you find such a person, is going to be a ruthless local that you probly dont want to deal with anyhow.

If you were to just leave the company in the locals name, and continue to pay him the fees, would this settle the problem? Is your lawyer able to speak to the locals lawyers to communicate still? Maybe he isnt taking kindly to you taking away part of his earnings when the company is still remaining in the country and thus would rather see the company vanish then someone else get what he sees as his rightful earnings.

This doesnt sound good.
 
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#8 ·
I cant get hold of the guy, and leaving him as the sponsor would maybe solve the situation but now he may not want to remain as he see's the possibility of the whole company coming to him. Also will always mean that at any point he may turn again and try something clever like he has now...
Lawyers are involved, but they arent exactly helpful, they only have their own interests at heart and how much they can make.
Lets just see what happens I guess.
 
#10 ·
A similar thing happened in the previous company I used to work for. If my experience is anything to go by, this will just run and run for years. The old sponsor will claim this, claim that, not show for court dates, claim all your documents are fake etc etc etc.

And just when you think it is sorted out, the courts paperwork is 'lost' and you are back to square one.
 
#11 ·
Personaly I think the dude is just rattling his sabre to see the most he can get out of it. Probably doesn't have the money to deposit the 50k in court for the case to go on. Just testing the waters to see if you will run at the first sign of legal trouble like most here leaving him to do as he wills. If he can't cough up the money the case gets thrown out.

Just wait out the two months and see what happens.

Offer him a good cash amount if you can. That usually solves the problem and thats what most of these things are about anyways. Most don't care about the bussiness and know they can't run it or just can't be plain bothered and rather see money. Lump sum or something monthly.

Also I disagree with jinxy. If you can strike a religious or moral side of a local and he sees you're on the right, he will help you, not in the sense he will battle on your behalf but since the local culture is all about respect for each other. He will try to reason with the guy on your behalf, specially if he is a from a big family/elderly/same clan/tribe/knew his father or uncle etc etc. So it becomes hard for the other party to say no to him or if he sees that person in the future can help him out with something else.

Good luck and hope it all works out for you.
 
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