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Practice

Corporate Conflicts

Control and balance

Advising founders, shareholders, investors and senior management in high-stakes corporate conflicts, including matters with civil and criminal overlap.

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Overview

Strategic advice for high-stakes UAE matters.

Not every corporate disagreement is a corporate law issue. Many conflicts are really about control, access, authority, money flows, documents and leverage. We advise on the full conflict picture — legal, evidentiary and strategic.

Why this matters in the UAE

Corporate conflicts in the UAE often develop across several pressure points at once: company records, operational control, banking access, regulator-facing communications, court action and criminal complaints. That requires integrated handling, not siloed legal advice.

What we advise on

  • Shareholder and partner deadlocks
  • Management misconduct and misuse of authority allegations
  • Conflicts over control, governance and access to corporate information
  • Asset diversion and business opportunity disputes
  • Corporate document, signature and authorization conflicts
  • Civil disputes with potential criminal exposure
  • Pre-escalation strategy and internal conflict structuring
  • Negotiation positioning in founder and investor conflicts

Typical matters

  • Partners or shareholders cannot reach an agreement, paralysing the business operations.
  • A company participant is suspected of asset stripping, using shell structures, or seizing control.
  • The conflict is complicated by criminal law risks: threats of police complaints or account blocks.
  • Pre-litigation settlement and a formal Settlement Agreement on favourable terms are required.
Our approach

Calm strategy. Precise execution.

  • Analyse control, leverage and evidentiary risk before choosing the litigation path
  • Treat governance, communications and external steps as part of the same conflict strategy
  • Anticipate where the opposing side may use criminal, regulatory or banking pressure
  • Align legal technique with commercial reality and maintain structural coherence of the response
Related practices

Connected areas of expertise

High-stakes matters rarely sit inside a single legal box. The strongest strategy usually comes from seeing the whole conflict map.

Confidential consultation

Facing a shareholder or corporate conflict in the UAE?

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Frequently asked questions

What matters before the first consultation

What does a typical shareholder dispute in the UAE look like?+

Most disputes we see start with a deadlock on a major decision, an allegation of misappropriation, or one founder withholding access to records or bank accounts. The UAE Companies Law (Federal Decree-Law 32/2021) provides several procedural tools — but practical resolution usually requires combining a corporate-law track with parallel pressure (litigation, criminal exposure analysis, asset preservation).

How can a minority shareholder protect their position?+

Three layers: contractual protections in the shareholders' agreement (reserved matters, tag-along, anti-dilution); procedural tools under UAE Companies Law (right to inspect records, court-ordered audit, minority oppression remedies); and where necessary criminal-track defence against bad-faith allegations engineered by the majority. The earliest layer to enforce is the contract — courts read shareholders' agreements seriously.

Can a UAE company be liquidated by a single shareholder?+

Generally no — voluntary liquidation requires the majority threshold set by the company's constitutional documents (commonly 75%). A single shareholder can petition the court for compulsory liquidation only on narrow grounds: deadlock, loss of more than half of capital, or persistent oppression. Unilateral 'silent' liquidation attempts — closing accounts, dissipating assets without formal process — are a common bad-faith pattern and a serious litigation trigger.

What happens when a partner blocks decisions in a deadlocked board?+

Three paths run in parallel. First, escalate within the shareholders' agreement (mediation, arbitration, casting-vote if any). Second, court-ordered relief — UAE courts have jurisdiction to break deadlock or appoint a receiver in narrowly-defined cases. Third, prepare for buy-out or sell-out by valuing the company and documenting which side controls operational reality. Most deadlocks end in negotiated buy-out, not court order.

Can a corporate conflict trigger criminal exposure for management?+

Yes — and this is the most under-appreciated risk. Allegations of misappropriation, fraudulent record-keeping, unauthorised data access (Cybercrime Law 34/2021), AML breaches or breach-of-trust can be filed by one shareholder against another as a complaint to police. Even when commercially unfounded, criminal exposure changes the negotiating dynamic radically — including travel ban risk. Counsel handling a corporate conflict in the UAE must always assess the criminal-track in parallel.

When is the right moment to bring in counsel for a founder conflict?+

At the first sign that the other side is preserving evidence asymmetrically — taking screenshots of WhatsApp threads, withholding documents, suddenly involving accountants or banks. By the time the dispute is overt, the documentary record is usually already shaped by whichever side prepared earlier. Engaging counsel for a 'stress-test' conversation costs little, and the preservation work that follows is often decisive.

Key contact
Egor Chernyshev
Egor Chernyshev
Head of the Foreign Affairs Unit
info@almurlaw.com