Federal Commercial Companies Law
Is your Company’s Constitution up to date?
The introduction of the new commercial companies law in July of this year (the “New CCL”) has made it mandatory for companies in the UAE to implement changes to their constitution, before the deadline on 30 June 2016. Failure to make these changes will cause companies (and their owners and management) serious – and entirely avoidable – problems. At present, it is perfectly possible to get the changes done, and thereby remain compliant with the law. We are focusing our efforts on getting our own clients through this process as painlessly as possible.
The New CCL imposes stricter penalties than its predecessor law, the most stringent of which is the requirement that all companies must amend their memorandum of association to comply with its provisions by the above date. Should any company fail to comply with this provision, it will be deemed to be dissolved. This kind of dissolution would be seriously detrimental to any company so affected – and all persons having dealings with it. Moreover, the regulators are empowered to impose hefty fines on directors, CEOs, general managers and employees found in breach of their obligations and duties under the New CCL.
Our Corporate Governance and Compliance Department would be happy to discuss, at no charge, how we can assist your company, to ensure that it complies with the New CCL, both now and in the future.
If you think an initial free consultation would be helpful, so that you can have a better understanding of your obligations under the new law and the ways we may be able to help you, please feel free to contact us at enquiries@jamesberrylaw.ae.
Managing Partner