Unified UAE Legislation Database

FAQ: Can a shareholder demand the dissolution of a commercial company?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Answer: 

Yes. If the company fails to achieve its purpose, or disputes between shareholders prevent it from functioning properly, courts may order dissolution.

 

Legal Basis: 

Article 305 of Federal Decree-Law No. 32 of 2021 on Commercial Companies.

 

Relevant Case Law: 

Case No.322 of 2025 / Dubai Court / Real estate appeal