Our client is a businessman who, along with another partner, founded a company specializing in metal industries. Our client holds a 75% stake in the company, while the other partner owns 25%. They agreed that the management of the company would be entrusted to a relative of the partner with the 25% share.
The company’s director was responsible for distributing profits among the partners. Due to our client’s busy schedule, he did not pay much attention to the profits he received from the company.
After some time, our client decided to engage an auditing firm to examine the company’s accounts. This decision was met with resistance from both the company director and the partner holding the 25% stake.
Consequently, our client approached us to take legal action to protect his interests and business.
We initiated legal proceedings, which included the dismissal of the company’s director and the appointment of a new one. Subsequently, we engaged an auditing firm, which revealed that the director and the partner who is holding 25% of the company’s shares had misappropriated approximately 16 million dirhams from the company’s accounts, funds that were meant to be profits owed to our client.
It was discovered that during his management duties, the director contracted with another company (refers later Company X ) owned by the partner who is holding 25% ownership. He rented manufacturing equipment and signed settlement agreement stating that our client’s company owed 12 million dirhams for this rental. The X Company as the equipment’s owner obtained a ruling against our client based on this agreement, which was misleading, as the equipment’s value had been fully financed by our client.
Meanwhile, both the director and the partner fled the country and appointed a law firm to represent them. Consequently, we took legal action and filed a criminal case against the absconding partner and director. A penal ruling was issued against them, and we secured a compensation judgment of 17 million dirhams against both the partner and the director jointly.
As part of our legal strategy, we appealed the ruling against our client’s company in court, arguing that it was based on deception by the opposing party. We demonstrated to the court that the equipment in question had been financed by our client’s partner. As a result, the court annulled the ruling and dismissed the case.
Subsequently, we obtained a copy of the judgment awarding compensation to our client and registered an enforcement file in the home country of the fleeing partner. We proceeded to seize all his properties and bank assets. Following this, we reached a settlement agreement with the opposing party, during which they paid all outstanding amounts to our client in exchange for to not the sale of their properties at auction. Once our client received all due payments, we lifted the seizure on the properties owned by the opposing partner.
If you have any legal inquiries, please do not hesitate to contact us for a consultation with our skilled attorneys, who are dedicated to protecting your rights and the interests of your company.
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