With the ongoing frauds investments always pose a threat of losing all your savings. There have been numerous cases wherein an individual after investing in some company latterly finds out that the company has dissolved or is liquidated. Also it appears that numerous Real Estate Buyers or individualities companies dealing with companies in the UAE are discouraged to initiate legal proceedings against a company that went to or under liquidation. vape shop
It frequently happens that the concerned parties are bothered with the system that will be needed to be complied with in order to be added with the list of Creditors and whether action or arbitration, as may be handed for in the Agreement between the parties, permit similar system of recovery of the debt owed.
The answer to this dilemma is set up in marketable Companies Law( CCL). The CCL permits for a claim to be appertained to the court or arbitration to recover a debt from a company under liquidation. Unlike bankruptcy where court conduct shall cease, court conduct can be filed or can be continued with in case of liquidation( Composition 691 of the UAE Commercial Code). The UAE Commercial Companies LawNo. 8 of 1984(" CCL") states that incontinently upon its dissolution the company shall be considered to be in liquidation. During the liquidation period it shall retain its commercial personality to the extent needed for the liquidation formalities. The authority of the directors or the board of directors shall cease with the dissolution of the company. The company institution shall continue to live during the liquidation period, and their authorities shall be limited to liquidation business that isn't within the authority of the liquidators. The liquidator shall perform all the needed liquidation functions, particularly to represent the company before the courts of law, settle the company debts and vend its portable means or real estate by transaction or any other system unless the document appointing the liquidator stipulates that the trade should be performed in a specific system.

therefore, as a matter of law, when the company is dissolved and liquidated, the company conserves its commercial body during the liquidation process and the liquidators represent the company under liquidation before the court of law.
Therefore, as only the representatives of the company change, no extermination of the commercial body occurs before the liquidation completion and check. There's neither assignment nor transfer of any agreement that intervenes between the company and the liquidators to consider the ultimate as a party to court or arbitration proceedings.

As to the applicable system of recovery of a debt it's generally set up in the agreement between the parties, videlicet a clause quested the system of working a disagreement. similar system is complimentary to any other system of a debt recovery available to the creditor under the Law.
This means that a creditor can either follow the rules handed for a debt recovery at the CCL or initiate arbitration or court proceedings. Any other interpretation to the contrary shall be supposed as overdue limitation of a indigenous right to litigate. The creditors can always communicate attorneys and take the applicable legal action against the debtor company.

The debtor may contend that the creditor shouldn't or didn't submit a formal claim to the Company's liquidators and as similar shall be responsible for the costs of arbitration or action. still, there are certain procedures the liquidators shall have to misbehave with. The UAE Companies LawNo. 8 of 1984 countries that the purpose of liquidation is to insure that all the company's affairs have been dealt with duly. This involves
• icing all company contracts are completed;
• Transferred or else brought to an end;
• ending the company's business;
• Settling any legal controversies;
• Dealing any means;
• Collecting in plutocrat owed to the company;
• Distributing any finances to creditors and returning share capital to the shareholders.
The Company in liquidation or its liquidators shall formally and as needed by the law to communicate the creditors in order to review their claims that they may have against the Company under liquidation and to invite them to present their claims in the liquidation. still, indeed if the liquidators failed to formally notify creditors of the liquidation in 2 original journals, the liquidators shall nonetheless make all reasonable vittles to pay all claims and scores, including all contingent, tentative orun-matured contractual claims known to it at the time of liquidation. vittles also need to be made as nicely likely to be sufficient to give compensation for any claim against the debtor company.

therefore, the liquidation proceedings don't affect the rights and claims that the creditors may have under the Agreement( s) with the debtor company as the arbitration or action proceedings are necessary in order to save the claims of the creditors and the prepayment of the same by the liquidators to the creditors.