A cofounder dispute can concern company shares, token allocations, code, keys, management powers or all of them. The first job is to identify the legal rights and preserve the operational evidence. A token dashboard or cap table may not match the signed documents.
What should you assemble first?
Collect the constitution, shareholder and founder agreements, token grants, vesting terms, IP assignments, board minutes, payment records, wallet and multisig permissions, and important communications. Make a dated list of what each founder claims, what the documents say and which actions are still possible without consent.
Separate urgent operational controls from the merits. Protect access to treasury, code and records through lawful governance steps. Do not move disputed assets merely because one founder holds a key.
Which route applies?
Read the governing-law, jurisdiction, deadlock, notice and arbitration provisions before sending a demand. A negotiated exit, formal mediation, arbitration or court claim may each fit different facts. The UAE federal mediation law and arbitration law supply distinct processes; neither guarantees an outcome or makes every settlement discussion privileged.
For a claim within DIFC Courts jurisdiction, the Small Claims Tribunal generally has a value limit of AED 500,000; some claims up to AED 1 million can proceed by party agreement under the published criteria. It is not the default forum for every founder disagreement.
What does a workable resolution cover?
Set out the shares and tokens, any vesting acceleration or cancellation, IP and customer access, signatory and key changes, disclosures to investors or regulators, payment timing and dispute process for non-performance. Test the documents against what the entities and smart contracts can actually execute.
Avoid relying on unsourced claims about the percentage of UAE founder disputes settled or automatic regulatory fines for an internal conflict. Liability depends on the conduct and applicable law.
Sources and notes
- UAE Federal Decree-Law 40/2023: mediation and conciliation framework.
- UAE Federal Arbitration Law 6/2018: arbitration framework.
- DIFC Courts, Small Claims Tribunal: eligibility and claim-value limits; jurisdiction must be checked separately.
Updated 24 September 2026. This guide is general information, not advice on an individual conflict.
