Monthly Archives: March 2017

New Commercial Companies Law – Mandatory Changes required to the Memorandum of Association

This is a Special Law Update from ProConsult Advocates & Legal Consultants, bringing to your attention the Mandatory Changes required to the Memorandum of Association of your LLC Companies before the end of June 2017, to avoid dissolution of your company & to prevent fines being imposed.

It has become imperative that you make changes to the Memorandum of Association of your LLC Companies in order to comply with the New Commercial Companies Law.

 

In fact the Grace Period is about to expire and these changes have to be made before the End of June 2017

 

THE NEW COMMERCIAL COMPANIES LAW (CCL)

What are the required changes that you as a Business owner have to make in a Memorandum of Association (MOA)?

 Introduction: The Law no.2 of 2015 dubbed as the New Commercial Companies Law or New CCL was enacted & came into effect on the 1st, of July 2015. It is a bold & a progressive attempt to regulate the business & commercial sector. It covers areas such as how the companies are to be managed keeping in view the principle of transparency, protection of shareholders rights, auditing of account etc. The new law in general attempts to provide a level playing field, encourage foreign direct investment and good corporate governance. [Article.2].

As a business owner or Manager of a Company where do you stand vis-à-vis the New CCL?

The intention of the legislature is to vigorously enforce the new company law. The provisions of this enforcement policy are as under:

First, all companies are under an obligation to conform to the provisions of the new law within one years of its coming into force. [Article. 374(1)]

Second, any failure to comply with the provisions of the new law will lead to the dissolution of the company in accordance with the provision of the New CCL unless the one year grace period is extended. [Article: 374(2)]

Lastly to ensure that the new law in followed in letter & spirit, the regulatory authorities has been given real teeth in form of a pecuniary penalty regime. For violation of new CCL penalties ranging from AED 10,000/- to AED 100,000/- shall be imposed on companies & their directors/managers/owners.

Therefore, to avoid dissolution of your company & to prevent fines being imposed it has become urgent to make the required changes in the company structure as the grace period is about to expire.

Article by ProConsult Advocates & Legal Consultants the Leading Dubai Law Firm providing full legal services & legal representation in UAE courts

UAE Anti- Discrimination Law

Law No. 2 of 2015 against Discrimination and Hatred, criminalizing all forms of discrimination on the grounds of religion, caste, creed, doctrine, race, color or ethnic origin, was enacted following a decree by the president of the United Arab Emirates Sheikh Khalifa Bin Zayed Al Nahayan, on 15 July 2015.

The Law is drafted in broad terms to ensure that it encompasses all discriminatory conduct regardless of how it is expressed. In this regard the Law criminalizes and condemns any acts that incite religious hatred or which insult religion and actions comprising hate speech or the promotion of discrimination or violence against others through any form of expression whether oral or written. This covers speech and the written word, books, pamphlets or via online and media, including online, print, radio visual media or social media.

The law also stipulates for punishment against anyone for calling other religious groups or individuals as infidels or unbelievers, and prohibits any acts insulting God, his prophets or apostles or holy books or houses of worship or graveyards.

The law further has provisions for fighting discrimination against individuals or groups on the basis of religion, caste, doctrine, race, color or ethnic origin.

Furthermore, Article 6 of the Law states in broad terms that a person who commits an act of discrimination may face imprisonment of up to 5 years and/or a fine of between AED 500,000 and AED 1,000,000.

Pursuant Article 9 of the Law, the same penalties may be imposed where a discriminatory act is committed by a public employee upon or due to performing his job.

The legislator’s intentions behind the law are to reinforce the sound foundation upon which the UAE society was built, and preserving the environment of tolerance, broad­ mindedness and wide acceptance in the UAE of other cultures, races, and religions. The law further aims to secure and safeguard people living in the UAE regardless of their origin, religious beliefs or race, against acts that incite hatred and intolerance.

This is particularly important in a multi-cultural country and society as the UAE, where individuals of different ethnicity, religions, races and colors, from all over the world come together to live and work, and where the expatriate population forms more than 85% of the general population.

If you have been the victim of an act of discrimination on the grounds of religion, caste, creed, doctrine, race, color or ethnic origin, you may contact our expert legal advisers and criminal lawyers in Dubai, who will handhold you through the judicial process of exerting your rights, where you will be represented by the leading law firm in Dubai and the UAE, ProConsult Advocate & Legal Consultants.

Article by ProConsult Advocates & Legal Consultants the Leading Dubai Law Firm providing full legal services & legal representation in UAE courts