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Businessman ordered to pay compensation to partner in tune of Dh500,000.

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Staff Writer, TLR

Published on July 14, 2023, 17:41:00

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UAE, Law, Dubai, compensation, ordered, partner, defendant, plaintiff

A businessman has been ordered to give his partner Dh500,000 as compensation for taking company profits and selling shares without authorization.

Equal ownership in the business was held by the accused and his business partner. But the accused started embezzling money after abusing his position as power of attorney.

The partner, an Arab guy, sued his business partner and demanded Dh2.5 million in damages for lost income and tangible property.

In a previous case, he also sought 12% of the Dh5.2 million. The plaintiff was scheduled to get the money in exchange for the firm shares he owned.

The plaintiff explained that since 2011, he and the defendant have shared a 50% ownership stake in the business as partners.

The man said that after handing the defendant the powers of attorney, he went to work for another company and left him to run their business alone. A Memorandum of Understanding (MoU) outlining their commercial connection, the proportion of shares each partner would own in the venture, and how earnings would be split was also signed.

He claimed that everything went smoothly up until the defendant took the business and its revenues in 2015.

Due to this, the plaintiff filed a complaint in the Abu Dhabi Commercial Court against the defendant, claiming ownership of the company and profits.

The plaintiff claimed that he was shocked to hear that the defendant had used the power of attorney given to him to sell all of his company shares to his son. Additionally, the defendant updated the business license to include both his and his son's names.

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