Say a company is incorporated in Dubai. All Shareholders live in Australia.

A co-founder does something against the company constitution, such as diluting other co-founder shares.

Can the other co-founders sue him using Australian Courts, since the company was incorporated is in Dubai?

  • a company has no constitution, only states have that. you might mean the bylaws of the company?
    – Trish
    Sep 4 '20 at 11:02
  • Yes by laws. People call it Constitution here Sep 4 '20 at 14:40
  • 1
    Your comment is not true at all in many jurisdictions. Associations, companies and organisations are all either required or are on very shaky ground if they don't have a constitution. A constitution may include bylaws, or it may not, these are not synonymous things. @Trish
    – Nij
    Sep 5 '20 at 2:11

Yes, if the court decides it has jurisdiction

The fact that all parties are Australian and reside in Australia could be enough to enliven that jurisdiction. It d3pends on if all parties agree to be subject to the jurisdiction of the court or if some argue that the correct venue is Dubai. If so, the court may agree with them or they might do so anyway.

If it does, it would be decided under Dubai law. This is likely to make things more expensive because the costs would include the time spent for the lawyers and the judge to learn the relevant law.

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