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What happens when 50/50 business partners disagree in a UAE LLC?

Asked by Anonymous·Jun 10, 2026·1 answers
My business partner and I each hold half of our Dubai company and we've reached a point where we can't agree on anything — hiring, spending, even renewing the licence. There's nothing in our agreement about breaking a tie. What options do partners in this situation usually have under UAE law?

This answer is AI-generated and editorially reviewed. It is general legal information, not legal advice — verify anything you act on with a licensed UAE lawyer. How LEXAI uses AI

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LEXAI

Editorially reviewed by LEXAI

Jun 11, 2026
A 50/50 company with no tie-break mechanism is genuinely deadlocked — neither of you can outvote the other, and UAE company law does not supply an automatic referee. That leaves a fairly standard menu of options. The cleanest is a negotiated exit: one partner buys the other out at an agreed valuation, often tested by inviting each side to name a price. Mediation with a neutral third party resolves more of these disputes than court does, particularly where the business itself is still healthy. If you both want to continue, you can amend the company's memorandum to add deadlock provisions for the future — a casting vote, a third board member, or a buy-sell mechanism. Selling the whole company to an outsider is another route. The last resort is asking the court to dissolve the company on the ground that it can no longer function; courts treat this as a final remedy, and it usually destroys value for both partners. Meanwhile, do not let the deadlock lapse the trade licence or block salaries — operational paralysis creates liabilities for both of you regardless of who is right. A corporate lawyer can review your memorandum and set out which exit route is realistic.
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