A company question!

[Chilli]

We all know that it is UAE law to provide an End-of-Service benfit to employees, but do you have to do the same for the company owners, ie Investors?
Surely their rewards are dividends and ownership? Any ideas?

Cheers.

[Harris_I]

Shareholders are not employees, so no, you don't.

Unless they're also employees....

If that makes sense....

[Hitch78]

The fair and equitable division of assets if would be expected if the company is being dissolved or the reimbursement of capital at market or negotiated rate from the new owner of shares if being sold.

You also need an agreement on division of profit in the year of the deal when accounts close. They get a share up to the date they sell usually as they held the risk of ownership until that point so ahve right to the rewards.

No such golden goodbye.

[Chilli]

Thanks gents.

However, the 3 owners also work for the firm, but there is no intention to sell, or any intention for them to leave. It's just a case of the accruals posted for the potential expense. They are happy not to get it, they expect not to. However, they didn't want to fall foul of any laws.

[Hitch78]

It's their money so they could take draw it from the firm as they wish.