In a recent Dubai Court of Cassation decision (Property Appeal 454 of 2015, dated 13 April 2016), the court highlighted that in the absence of an agreement between shareholders that sets out the sharing of losses (and profits), the courts will treat the company as a ‘de facto’ company. In the event there is an agreement but it is silent on losses/profits, the trial court has the discretion to interpret a contract and determine the parties’ intent by establishing its objects and terms in light of the circumstances surrounding its formation. The courts will not consider an incorrect description of the parties’ agreement.