When should Dubai landlords inform tenants of rent increase?
■ A year ago, I rented a villa. The lease expires in February. Two weeks ago, the real estate office sent an email informing me that the rent will increase. Do they have right to evict me if I do not agree to the increase? According to the rental law, who is responsible for maintenance of the property? The landlord has the right to increase rent, but he should have informed you no less than 90 days before the tenancy contract expires. Else, you are not obliged to accept the increased rent, nor can he evict you.
Rental increase is usually determined by the municipality or authority concerned. They have exclusive authority to specify percentage of rent increase in an emirate.
In case of a dispute between the landlord and tenant, the Rental Dispute Centre (tribunal) will determine the rental amount of the property, taking into account the criteria determining the percentage of rent increase set by Rera and other factors.
Finally, the responsibility for the maintenance is usually on the landlord unless otherwise agreed between the parties. Article 16 of the law states that the landlord shall, during validity of the tenancy contract, be liable for undertaking maintenance of the property and shall rectify any defects or faults that affect tenant’s intended benefit from the property, unless the two parties agree otherwise. This shall not violate tenant’s obligation to execute maintenance such that which is ordinarily done by tenants.
I have not been paid a salary for six months
■ I have been working in a private company for two years as a manager. I am entitled to a monthly salary in addition to being a 20 per cent partner. I have not received my salary for six months. What is the legal procedure to claim my salaries? The company is currently going through a financial problem. Can I file a lawsuit to liquidate the company? is the consent of all partners required?
If you are appointed as per a labour contract then you have to file a case in the labour court. But if your management is as per the memorandum of association or Statute of the Company then you have to file your case in the civil courts.
In general, unless the Memorandum of Association or Statute of the Company provides for the method of liquidation or the partners agree otherwise upon the dissolution of the Company, the provisions of the DecreeLaw no 32 of 2021 regarding Commercial Law shall apply to liquidation, which depends on whether it is a limited liability or a joint stock company.
For a LLC, if the partners agree to liquidate it, they can appoint a liquidator without filing a case in the court. If there is no agreement, then the court will appoint a liquidator as per a request applied by partners holding one quarter of the capital.
Dissolution of a company
Article 308 of Federal Decree Law No 32 of 2021 states that if the losses of a LLC reach half of the capital, the managers shall refer the dissolution matter to the general assembly of partners. The dissolution decision shall be passed by the majority prescribed for amending the Memorandum of Association. If the losses reach three-quarters of the capital, the partners holding one quarter may request to dissolve the company.
For a joint-stock company, if losses reach half of its issued capital, the board of directors shall within 30 days from the date of disclosure of financial statements to the concerned authority, invite the general assembly to convene within 30 days from the date of invitation.
If the board of directors fails to invite the general assembly to convene or if the general assembly fails to issue a decision in the matter, each interested party may file a lawsuit before the competent court seeking the dissolution and liquidation of the company in accordance with the provisions of the law.