Company liquidation refers to the legal process through which a commercial company is dissolved and its financial affairs are wound up in accordance with

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

A company may be liquidated where shareholders adopt a dissolution decision, where the company term expires, where the company achieves its purpose or where other legal grounds for dissolution arise under UAE commercial companies legislation.

The liquidation process is typically managed by a liquidator appointed by shareholders, the court or the competent authority responsible for company registration.

During liquidation, company debts must be examined and settled before remaining company assets may be distributed to shareholders.

Yes. Creditors may submit claims during the liquidation process and must generally be satisfied before any distribution of remaining assets to shareholders.

Yes. Once company liabilities have been settled, any remaining assets may be distributed among shareholders according to their ownership interests and the company’s constitutional documents.

Yes. Disputes may arise concerning creditor claims, distribution of liquidation assets, conduct of the liquidator or the legality of the dissolution decision.

A company generally ceases to exist once liquidation procedures have been completed and the company has been removed from the commercial register.

Company liquidation disputes may be resolved before the competent courts responsible for commercial and corporate disputes within the United Arab Emirates.