Sheikh Mohammed Bin Rashid Al Maktoum . File photo
Gulf Today, Staff Reporter
In his capacity as Ruler of Dubai, Vice President and Prime Minister of the UAE His Highness Sheikh Mohammed Bin Rashid Al Maktoum issued Law No. (9) of 2020 regulating family-owned businesses in Dubai.
By providing a clear legal framework for family ownership in the emirate, the new Law seeks to protect families’ wealth, enhance the contribution of family businesses to economic and social development and foster the growth of family businesses.
The Law is optionally applicable to existing and new family ownerships, including corporate equity securities and proprietorship. Family ownership in public joint stock companies and movable and immovable property are excluded from this law.
For the family ownership contract to become legally binding, all parties of the contract must be members of the same family and have a single common interest. Furthermore, the contract must clearly define the share of each member, and parties of the contract must own all the legal rights of the monies and assets that are under the purview of the contract. The family ownership contract must also be duly attested by the notary public according to the rules and regulations stipulated in Law No. (4) of 2013 concerning Notaries Public in the Emirate of Dubai.
According to the new Law, the validity of a family ownership contract can extend up to 15 years. It can be renewed for a similar term following the agreement of all concerned parties. The Law also regulates the articles of the family ownership contract, the business’s structure and management, the formation of the board, the authorities and responsibilities delegated to the board and management as well as the management’s powers and limitations.
The Law also defines the responsibilities and authorities of government entities with regard to facilitating the formation of family-owned businesses.This Law annuls any other legislation that contradicts of challenges its articles. The Law is valid from the date of its publication in the Official Gazette.
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The event, organised by the UAE Space Agency, is the largest gathering of global space industry leaders in the Middle East and North Africa.
Mohammed also praised New Zealand’s communities for their solidarity with their Muslim neighbours against the hate crime.
His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, on Monday instructed the people concerned to start assessing the services of 600 government service centres, stressing that the UAE leadership will be satisfied only with the world’s top place in services and all facilities.
Priority would be given to those who are registered in the Hajj electronic system and whose data have been previously updated.
"The FNC is confident that the UAE, under President His Highness Sheikh Mohamed, will see a new era of achievements and development. The country will continue to be the nation of giving, tolerance, safety and security," Ghobash said.
The move, which will bring total available funding for projects over the next 15 months to $30 billion, was unveiled hours before a major United Nations meeting on global food security.