The Dubai Commercial Court has ordered the dissolution and liquidation of a land transport company after finding that its capital had been fully eroded and its liabilities had surged to nearly Dh34 million, leaving it unable to continue operations.
The ruling followed a lawsuit filed by one of the company’s partners, who argued that mounting losses had effectively paralyzed the business.
The company had already ceased operations, with its financial obligations far exceeding the capital stated in its founding contract.
To assess the firm’s financial condition, the court appointed an independent accounting expert to examine its records, assets, and liabilities.
The expert concluded that the company was no longer active,…