There is certainly a lack of publicly available and easily digestible legal information for Entrepreneurs and their Investors in the UAE. Because of that inaccessibility, a lot of first-time founders resort to using completely irrelevant contract templates that they find online. Those were drafted with foreign laws and practices in mind, which becomes problematic when a dispute arises under that contract and the entrepreneur discovers that the contract is governed by New York laws or that the place of arbitration is Montreal.
I have also seen a first-time founder being left completely in the lurch by his co-founders, as instead of the Shareholders’ Agreement that they intended to execute (making their liabilities limited to the amount of capital contributed into the company) they executed a Partnership Agreement that they downloaded from some UK website. Their reasoning was – we are going into a partnership, right?! No, you are not!
The concept of ‘partnership’ under the English laws carries certain legal concepts developed by hundreds of English court decisions (also known as precedents). That specific agreement made the founder in question responsible for the debts of his co-founders. Not an ideal situation, is it?
I can go on sharing my ‘war stories’ …
Most of my lawyer’s time spent answering the same questions over and over, so starting a blog on most common issues faced by entrepreneurs based on my practice, sounds like a good idea to spread what I know.
My aim is to make available most commonly used contracts and other legal templates required to start, run, grow and fund a company. The database will grow based on your requirements, so please do drop me a line letting me know of the most common documents that you are missing in running your business.
All of the contracts and templates are customised specifically for the UAE laws and, most importantly, drafted considering the UAE court practices in mind.
Use of this website and the template contracts are subject to the terms & conditions. All opinions are mine only.