This issue is filled with great insights and expert commentary on areas that are relevant to the legal landscape and highlight how the business community is embracing technology, media and telecommunications. There are various topics covered, from new ways of working and digital transformation in the finance sector to data protection regulatory updates and guidance. We also have a series of articles that focus on e-commerce across a number of jurisdictions.
You will also find insights from our lawyers around real estate analytics, tech trends, and data centres.
We hope this edition of Law Update provides some useful food for thought – enjoy the read!Take a read of the edition
Becoming a director gives status and a direct impact on the strategy and success of a business. But at times when businesses face financial difficulties, directors are often faced with the challenge of balancing their obligations to shareholders, creditors and other stakeholders, while diligently performing their duties and keeping in mind potential personal liability.
Directors in the region will typically be under a general duty to:
But what changes in the context of insolvency: are there different considerations? As a starting point a heightened level of awareness and care is required in a potential insolvency situation. In certain jurisdictions like the United Kingdom, a director’s duty can effectively switch to be owed to the creditors of the relevant company as opposed to the shareholders. This is also the case in the UAE common law jurisdictions of the Dubai International Financial Centre and Abu Dhabi Global Markets. While this is not necessarily the case in the Middle East, directors must be aware of their obligations when potentially trading while insolvent and what steps should be taken to protect themselves and the company.
Relevant considerations include:
The need to consider these issues is amplified by the potential liability that can sit with directors. Looking at the region: