Companies incorporated under provisions of Company law in a specific form may be changed to another type, after satisfying the legal requirements under Company Law. (Company Law, Part Nine, Chapters 1 & 2, Arts. 273-280, Part Ten, Chapters 1 & 2, Arts. 281-312)
The change is made by a decision or resolution adopted in accordance with the procedures stated in the amendment of the company’s Memorandum and Articles of Association. Moreover, the company must complete the incorporation formalities stipulated by DED (Dubai Economic Department) for the new company, and the change of the company type must be recorded in the Commercial Register with the valuation statement. Therefore, a statement concerning the assets and liabilities of the company and the estimated value must be attached to the decision to change the type of company.
The assets and liabilities held by the company before the transformation will be transferred to the new company. The joint partners cannot be released from liability for the company’s previous debts without the consent of the creditors. This consent will be presumed if a written objection is not made by the creditors within a specific period of 3 months from the date of their formal notification of the decision to transform the company. The above mentioned notification is published twice in the local press by the Municipal Authority concerned, indicating the change of the company legal form and requesting parties whose rights could be affected to object.
Each of the partners in the transformation of a public joint stock company/ a partnership limited with shares/ Limited Liability Company shall have the right to acquire an equal number of shares in the new company as they had previously held in the old company.
What is the full list of fines for money laundering in the UAE? Dr. Hassan Elhais
The UAE Ministry of Economy has announced the list of penalties for violations of the laws relating to money-laundering and terrorism financing.
Can I Appeal Against an Arbitration Award?
Arbitration is best described as a cost-effective alternate dispute resolution process, which assists in smoother business relationships without incurring the rigidity of court proceedings. To address many of the pitfalls of the arbitration process and to bring the UAE arbitration process in tune with the best international standards, the UAE enacted Federal Law No. 6 of 2018 on ‘Arbitration’ and its amendments (“Arbitration Law”).
Commercial leasing and breach of contract punishments
In legal terms, a lease agreement can be defined as ‘a contract by which one party conveys land, property, services, etc. to another for a specified time, usually in return for a periodic payment’. A ‘commercial lease agreement’ constitutes a written lease agreement whereby a landlord agrees to lease his commercial property to another person or entity for a given business purpose and specified time period.
