Simple Partnership Dissolution Agreement for United Arab Emirates

Simple Partnership Dissolution Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that formalizes the dissolution of a partnership between two or more partners. This agreement complies with the UAE Commercial Transactions Law (Federal Law No. 18 of 1993) and the UAE Commercial Companies Law (Federal Law No. 2 of 2015), outlining the terms and conditions for ending the partnership, distributing assets, settling liabilities, and managing post-dissolution obligations. It includes provisions for final accounting, business closure procedures, and necessary notifications to relevant authorities and stakeholders in accordance with UAE legal requirements.

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What is a Simple Partnership Dissolution Agreement?

The Simple Partnership Dissolution Agreement is a crucial document used when partners decide to formally end their business relationship in the UAE. It serves as the legal framework for partnership termination, ensuring compliance with UAE Commercial Transactions Law and Commercial Companies Law. This document is essential when partners mutually agree to dissolve their partnership or when dissolution becomes necessary due to specific circumstances outlined in the original partnership agreement. It covers critical aspects such as asset distribution, liability settlement, final accounting, and business closure procedures. The agreement must be properly executed and registered with relevant UAE authorities, including the Department of Economic Development, to ensure legal validity and proper closure of the business entity.

What sections should be included in a Simple Partnership Dissolution Agreement?

1. Parties: Identification of all partners involved in the dissolution, including full legal names and addresses

2. Background: Brief history of the partnership, reference to original partnership agreement, and reason for dissolution

3. Definitions: Key terms used throughout the agreement

4. Dissolution Date: Specific date when the partnership will be officially dissolved

5. Agreement to Dissolve: Express agreement of all partners to dissolve the partnership

6. Final Accounting: Process for conducting final accounting of partnership assets, liabilities, and accounts

7. Asset Distribution: Detailed provisions for the distribution of partnership assets among partners

8. Settlement of Liabilities: Provisions for payment of outstanding debts and liabilities

9. Partner Responsibilities: Ongoing duties and responsibilities of partners during dissolution process

10. Business Closure: Steps for closing business operations, including cancellation of licenses and registrations

11. Notice to Third Parties: Requirements for notifying customers, suppliers, and other stakeholders

12. Governing Law: Specification of UAE law as governing law and relevant jurisdiction

13. General Provisions: Standard clauses including entire agreement, amendments, and severability

What sections are optional to include in a Simple Partnership Dissolution Agreement?

1. Intellectual Property Rights: Distribution and ownership of IP rights post-dissolution, used when partnership owns significant IP assets

2. Employee Matters: Handling of employment contracts and obligations, included when partnership has employees

3. Ongoing Legal Proceedings: Management of existing legal claims or proceedings, included when there are pending legal matters

4. Non-Compete Provisions: Restrictions on partners' future business activities, included when partners agree to post-dissolution competition restrictions

5. Confidentiality: Ongoing obligations regarding confidential information, included when sensitive business information exists

6. Tax Matters: Specific provisions for handling tax obligations and returns, included when complex tax matters exist

7. Dispute Resolution: Specific procedures for resolving disputes during dissolution process, included when partners want detailed dispute resolution mechanisms

What schedules should be included in a Simple Partnership Dissolution Agreement?

1. Schedule A - Asset Inventory: Detailed list of all partnership assets and their agreed values

2. Schedule B - Distribution Plan: Specific allocation of assets and liabilities among partners

3. Schedule C - Outstanding Liabilities: List of all debts, obligations, and pending payments

4. Schedule D - Closing Checklist: Step-by-step list of actions required to complete dissolution

5. Appendix 1 - Partner Resolution: Formal partner resolution approving dissolution

6. Appendix 2 - Final Accounts: Final financial statements and accounting records

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Cost

Free to use
Clauses
Relevant Industries

Professional Services

Retail

Construction

Trading

Consulting

Real Estate

Food and Beverage

Technology

Manufacturing

Healthcare

Education

Small and Medium Enterprises

Relevant Teams

Legal

Finance

Operations

Compliance

Corporate Governance

Executive Leadership

Administrative

Business Development

Risk Management

Accounting

Relevant Roles

Business Owner

Managing Partner

General Partner

CEO

Legal Counsel

Chief Financial Officer

Business Development Manager

Operations Manager

Compliance Officer

Account Manager

Corporate Secretary

Finance Director

Managing Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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