The Dubai Commercial Court has ordered the dissolution and liquidation of a land transport company after confirming that its capital had been completely exhausted, with debts reaching nearly Dh34 million.
The ruling followed a detailed report submitted by a court appointed accounting expert, which confirmed that the company was no longer financially viable and unable to continue its operations. The case stemmed from a commercial dispute in which one of the partners filed a lawsuit requesting the company’s dissolution, citing severe financial losses and mounting liabilities that exceeded the capital stated in its articles of incorporation. According to the lawsuit, the company had effectively stopped operating after its losses made it impossible to achieve its business objectives or meet its financial obligations.
During the proceedings, the court assigned an accounting expert to review the company’s financial position. The expert examined the company’s accounting records, assets, and liabilities to determine whether it remained operational. The findings showed that the company had ceased all activity, owned no real estate or movable assets, had no available cash, and was in a negative financial position. The report confirmed that accumulated losses had wiped out the company’s entire capital and that its liabilities exceeded its assets.
After reviewing the expert’s conclusions, the court heard the case in open session. While the plaintiff’s legal representative attended, the remaining defendants failed to appear. Based on the evidence presented, the court ruled in favour of dissolving and liquidating the company due to its proven inability to continue operating.
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