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Find out moreThe final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.
Read the full editionRecently, the UAE Cabinet enacted Cabinet Resolution No. (102) of 2022 Promulgating the Administrative Penalties Regulations Regarding Acts Committed in Violation of the Provisions of Federal Decree-Law No. (32) of 2021 regarding Commercial Companies (“Penalties Law”). The Penalties Law introduces penalties on UAE onshore companies that are found in violation of certain provisions of the UAE Federal Decree by Law No 32 of 2021 concerning Commercial Companies (“UAE Companies Law”).
The Penalties law applies to all types of entities that can be formed in the UAE onshore, including partnerships and joint stock companies.
In this alert, we would like to highlight the key fines that could be imposed towards onshore limited liability companies (“LLCs”).
If you are a shareholder or a manager of an LLC, you should be mindful of the following sanctions that have been introduced under the Penalties Law:
Be Proactive, Not Reactive!
Although we are yet to see what impact the enactment of the Penalties Law will have on the UAE onshore companies, the enactment itself indicates authorities may intend to start taking a closer look at compliance by individual companies with the UAE Companies Law.
We recommend you assess practices adopted by your UAE company, to reduce the risk of finding yourself/ your company in breach of UAE Companies Law, as such breach can result in sanctions being imposed by the authorities.
To assist you in preventing your LLC being found in breach of the UAE Companies Law, we would be delighted to:
(i) conduct a “health check” review of your company;
(ii) share our findings/ recommendations; and
(iii) assist you in rectifying areas that may so require.
To learn more about our services and get the latest legal insights from across the Middle East and North Africa region, click on the link below.