Company Liquidation Law
Liquidation, Insolvency & Bankruptcy Law Services in the UAE
A UAE business can be farmed with financial strain because of its cash-flow trouble, economic decline, outstanding debts, or other difficulties in running its operations. Once the liabilities exceed the assets or the debts become in-payable in due time, companies and individuals have to move promptly in securing their legal and financial standing.
HHS lawyers and legal consultants offers a one-stop shop in UAE liquidation, insolvency and bankruptcy. We assist companies, film makers, investors and individuals in taking through intricate legal procedures with simplicity and adherence.
Understanding Liquidation, Bankruptcy and Insolvency
Insolvency
Insolvency is the inability of a business or individual to pay the debt when it becomes due or where the liabilities are higher than the available assets. It is not necessarily an invitation to closure but it is a legal alert which needs to be tackled on the spot.
Bankruptcy
Bankruptcy is a process through which a debtor is legally relieved by the UAE law on the problem of covering the debt when a person is no longer able to perform the financial obligations. The law provides the orderly procedures to either:
Reorganize debts and proceed with business, or
Head towards court-supervised liquidation.
You may also read more about what happens when someone declares bankruptcy in UAE and filing bankruptcy proceedings in UAE.
Liquidation
Liquidation refers to the process of winding up a business and allocating the business assets to creditors in a legal priority. It may be:
By choice, or voluntary, initiated by shareholders or partners, or
Writ of bankruptcy, and after being ordered by the court, as a result of creditor action. For further clarity, refer to bankruptcy liquidation of debtors assets & company liquidation assets division under the new bankruptcy law.
Legal Framework Bankruptcy and Insolvency in the UAE
The UAE has developed a new regime that is meant to:
promote financial reorganization at an early stage,
Protect creditors’ rights,
Bar unreasonable criminal culpability of real financial hardship,
Assist business continuity where it can be.
The law applies to:
Mainland companies,
Free-zone organizations (with certain rules to observe),
People and professionals running business.
Our law department is responsible to give maximum adherence to UAE bankruptcy and insolvency laws and protecting interests of our clients throughout the process.
You may also review the new UAE bankruptcy law for deeper legal insight.
Liquidation and Insolvency Law Services
Corporate Insolvency Advisory
We evaluate financial and legal status of businesses in distress and communicate advice on:
Insolvency risk evaluation,
The legal responsibilities and liability of directors,
Exit or available restructuring options,
Prevention measures at an early age to prevent escalation.
Related reading:
factors to consider before filing corporate bankruptcy in UAE.
Bankruptcy Filing and Representation
We assist clients with:
UAE law bankruptcy filings,
Procedural compliance and court representation,
Association with trustees, courts, and regulators,
Guarantee of rights of debtors in the proceedings.
We do this by trying as much as possible to keep the distraction to a minimum but provide legal cover. You may also read about open application for declaring bankruptcy in UAE.
Voluntary Liquidation of Companies
HHS Lawyers deals with entire voluntary liquidation process, which includes:
Shareholder resolutions,
Appointment of liquidators,
Government permission,
Liquidation of creditor claims,
Cancellation of final deregulation and license.
We make the process legal, transparent and well implemented.
Creditor-Initiated and Court-Ordered Liquidation
We represent:
Companies reacting to creditor claims,
creditors desiring to recover by the way of liquidation,
Parties in controversial liquidation.
Our team is through with litigation, negotiations, and enforcement activities that are executed with a high degree of legal precision and strategic results.
Debt Restructuring and Preventive Settlement
Until it is too late and it must be liquidated, we help with:
Debt restructuring plans,
Negotiations with creditors,
Preventive settlement procedures,
Restructuring plans approved by the court. For more understanding, see preventive composition under bankruptcy law in UAE.
This will enable the businesses to stabilize and even trade.
Director and Shareholders Protection
The mismanagement of insolvency can put the personal liability on directors and shareholders. We advise on:
Obedience to legal requirements,
Prevention of wrongful trading risks,
civil and criminal exposures protection,
Adequate documentations and disclosures.
The initial legal advice is very important to minimize individual liability.
Personal Insolvency and Individual Bankruptcy
We also help people, entrepreneurs, and professionals with:
Bankruptcy declarations at the personal level,
Debt settlement arrangements,
Court representation,
Legal protection strategies in assets.
We are subtle, practical, and solution oriented.
Reasons to Hire HHS Lawyers for Insolvency and Liquidation
E. g. many years of experience in UAE commercial and insolvency law,
Risk minimization and compliance strategic guidance,
comprehensive management of complicated legal processes,
Good negotiation and litigation skills,
Effective communication and instructions.
We collaborate with financial advisors, auditors, and liquidators in order to provide integrated solutions.
You may also visit our Bankruptcy Lawyer UAE practice page for complete service coverage.
When to take Legal Advice for Liquidation
You need to consult with an insolvency lawyer in the event that:
Your company is unable to cover debts punctually,
Creditors have already served legal notices or claims in the court,
Cash-flow issues are long-term,
Directors do not know what they are legally liable to,
Closure or revamp is under consideration.
Intervention at a young age in matters of the law can go a long way.
Talk to Our Bankruptcy and Insolvency Lawyers
And legal advice is necessary to you, should you be in a state of financial distress or are contemplating liquidation or bankruptcy in the UAE. HHS Lawyers and Legal Consultants are trusted, confidential, and strategic law consultants who can guide you through insolvency confidentially and in legal compliance.
Call us now to have a consultation session with our qualified insolvency and bankruptcy attorneys.
