24/7 Open Support
Contact us now:
Dubai: +97143782013
Abu Dhabi: +97126501211

What is the Liability of new Shareholder in the Company?


Question:

LLC restaurant the owner takes loan in his investor capacity and issues company cheques. Subsequently sells to another person / transfer done in court, license name changed and license transfer in DED. will the liability of non payment by previous owner fall on the new owner or affect the company now?

Answer: 

Thank you for your inquiry.

Comprehending the facts of the case, it is pertinent to note that in the event of sale of shares to a new shareholder, the new shareholder is authorized to enjoy the profits of the company as well as obliged to fulfill the liabilities incurred by the company prior to the transfer. Thus, we always advise our client to conduct due diligence prior to signing the sale of shares agreement to avoid future casualties. Further, in the concerned case, we can review the documents signed by the previous owner in order to have detailed information pertaining to the matter.

Business Legal Consultation





I Agree to Terms and Conditions*

Select your Language:

     

Main Menu

whatsapp