UAE introduced a Resolution on the Economic Substance (Cabinet of Ministers Resolution No.31 of 2019, the “Regulations”) on 30 April 2019. The Regulations require UAE onshore and free zone companies and other UAE business forms that carry out any of the “Relevant Activities” listed below to maintain an adequate “economic presence” in the UAE relative to the activities they undertake. Relevant Activities: Banking Business Insurance Business Investment Fund management Business Lease – Finance Business Headquarters Business Shipping Business Holding Company Business Intellectual property Business (“IP”) Distribution and Service Centre Business If the business meets the following conditions in the UAE … Continue reading COMPLIANCE WITH ECONOMIC SUBSTANCE REGULATIONS
Last updated on April 30th, 2020 at 04:12 pmDuties of the Board of Directors: Implementing a policy that ensures stakeholder welfare; Ensuring the company has sound administrative, financial and accounting systems; Establishing procedures to manage conflicts between board members, senior management, shareholders and so on; Ensuring the application of governance rules in the company. Powers of the Board of Directors: The Board of Directors shall have all the required powers to do such acts as required for the object of the company, other than as reserved by the UAE Federal Law No. 2 of 2015 on Commercial Companies or the Articles of Association of the company … Continue reading DUTIES, POWERS AND LIABILITY OF THE BOARD OF DIRECTORS IN THE UAE
Last updated on April 13th, 2020 at 10:13 amThe precautions being put in place globally to address the spread of Coronavirus (Covid 19) include recommending or requiring many to work from home. Question whether it is possible to legally execute documents by electronic signature. The answer is it depends. Relevant factors include the governing law of the document, the type of document that is to be signed, the form of electronic signature used and whether there are cross-border implications to be considered. Electronic Signature is defined as any letters, numbers, symbols, voice or processing system in Electronic form applied to, … Continue reading ELECTRONIC SIGNATURE WHILE WORKING FROM HOME (UNDERSTAND LAW ABOUT ELECTRONIC COMMERCE AND TRANSACTIONS)
Last updated on April 15th, 2020 at 03:50 pmArticle 273 of the Civil Transactions Law Number 5 of 1985 in the United Arab Emirates specifies the following: in bilateral contracts, if a force majeure arises then it makes the performance of the obligation impossible. The corresponding obligation shall be extinguished and the contract ipso facto rescinded. If the impossibility is partial, the consideration for this part shall be extinguished. This shall also apply on the provisional impossibility in continuous contracts. In both instances the creditor may rescind the contract provided the debtor has knowledge thereof. Whilst the law does not … Continue reading IS CORONAVIRUS OUTBREAK CONSIDERED AS FORCE MAJEURE EVENT UNDER UAE LAW?
Last updated on March 30th, 2020 at 11:39 pm In accordance with resolution No. (38) for the year 2020 following the cabinet decision No. 17 of 2020 regarding violating regulations for spreading communicable diseases. The resolution sets penalties ranging from Dh 500 to Dh 50,000 for violating precautionary measures to curb the spread of coronavirus. According to the resolution, the penalties would double if a person repeats the violation. And if caught committing the violation for the third time, the offender would be referred to the federal public prosecution. List of violations and penalties Dh 50,000 fine for not complying … Continue reading List of fines for violating Covid-19 precautionary measures in the UAE
Last updated on September 14th, 2019 at 12:55 pm