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Dubai forms special committee to resolve family business disputes – News

Its objective is to accelerate the resolution of disputes and help find a balance between prompt justice and the economic interests of these companies.

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Published: Tue 24 Oct 2023, 20:12

Under the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and Chairman of the Dubai Judicial Council, has issued a resolution for the formation of a ‘Dispute Settlement Committee on Family Businesses and Family Ownership’ in Dubai, to ensure the continuity of family businesses and prevent any damage to their reputation or financial position while resolving a dispute. he considered.

The decision is in line with rapid measures taken in Dubai to boost family businesses and ownership sustainability, and maintain the role of family businesses as partners in the emirate’s economy.

Sheikh Maktoum highlighted that the formation of a committee to resolve disputes over family businesses and family ownership is a reflection of Sheikh Mohammed bin Rashid Al Maktoum’s vision of instilling the values ​​of justice and the rule of law, as well as his guidelines for establishing a comprehensive legal framework agreement to support the sustainability of family property and businesses and enhance their contribution to Dubai’s economy.

“We continue to work to create a business environment that supports the sustainability of family businesses, ensures continuity of ownership and helps improve their governance and contribution to Dubai’s economy as key development partners and leading destination for promising investment opportunities. “said Sheikh Maktoum.

“Dubai wants to ensure that we have the right climate that helps family businesses grow and flourish generation after generation, contributing to the Dubai Economic Agenda D33 goal of making Dubai one of the world’s leading urban economies, as well as the fastest growing and most attractive. business center,” she added.

He noted that the ‘Property and Family Business Dispute Settlement Committee’ will be made up of financial experts who will work alongside judges to provide specialized judicial expertise.

“The committee will consider and resolve all disputes relating to family businesses and family property preserving their continuity and avoiding interruption of their work or damage to their reputation or financial situation during the period of consideration of the dispute. “Dubai was, is and will continue to be an incubator for family businesses and properties and an advocate for effective justice,” he added.

Building a safe community

Taresh Eid Al Mansouri, President of Dubai Courts, said that the decision to form the ‘Committee for the Settlement of Disputes on Family Businesses and Family Property in the Emirate of Dubai’ arises from the commitment of the wise leaders to build a secure society and a fair judiciary. , achieving leadership and excellence in the judicial sector at all levels.

He explained that the committee was formed within Dubai Courts to take advantage of the judicial and administrative work of the Dubai Courts system and the diversity of jurisdictions and legal experience, in addition to its digital infrastructure.

enforce the laws

For his part, Prof. Saif Ghanem Al Suwaidi, Secretary General of the Dubai Judicial Council, highlighted that the committee will activate Federal Decree-Law No. (37) of 2022 on family businesses, and Law No. (9) of 2020 on the regulation of family property in the emirate of Dubai.

He added that it will speed up the resolution of disputes and help find a balance between prompt justice and the economic interests of these companies.

Committee formation

A judge of no lower rank than a judge of appeal shall be appointed chairman of the committee. It will also include two members with experience and competence in the legal, financial and family business management fields, who will be appointed based on the recommendation of the Director General of Dubai Chambers.

The resolution also stipulates the formation of the committee within the Dubai courts.

Committee Responsibilities

Based on the issued decision, the committee may consider and resolve all disputes arising from the execution of the family property contract, or between partners of the family business or between these partners and family members.

Its functions also include considering and resolving matters related to the termination of the family ownership contract, the termination of the status of a family business or its deregistration from the family business register established in accordance with the Family Business Law, as well as determine the price of the shares of the partners in the family business, resolve controversies related to the right to redeem them, and consider and decide on issues related to the cancellation of the change of categories of shares in family businesses.

In order to preserve family ties between family members, the resolution stipulates that if the family property contract or memorandum of association or the charter of the family business includes a provision stating that disputes will be resolved amicably through of the Council of Family Members, the Committee shall, before considering such disputes, refer them to that Council to propose reconciliation between the parties to the dispute.

The resolution also stipulates activating the role of the Center for the Amicable Resolution of Disputes attached to the Dubai Courts in the amicable resolution of disputes over corporate and family property through conciliation and reconciliation, as the decision prevented the Committee from considering these disputes before submitting them to the Center and failing to resolve them amicably.

Committee powers

In order for the committee to optimally perform its functions, the resolution establishes that it is granted the power to take the necessary preventive and urgent measures that it deems appropriate to preserve the continuity of the family property or the family business, and avoid interruption of their work or any damage to their reputation or financial situation during the period of consideration of the conflict, as the first objective of the committee’s intervention in the conflict.

Appeal committee decisions

In order to ensure the achievement of timely justice and maintain the levels of litigation in a manner that achieves the interests of the parties and the justice system in the emirate, the resolution stipulated the possibility of appealing the decisions and rulings of the committee before the competent court in the Dubai Courts, in accordance with the cases and procedures stipulated in the Civil Procedure Law.

The decision also obliges the committee to submit periodic reports on its work to the Ministry of Economy in order to achieve a periodic review of this work and ensure that measures and steps are taken to increase its effectiveness.

Sheikh Mohammed bin Rashid Al Maktoum had issued a decree last February, ordering the establishment of the Family Business Center in Dubai aimed at ensuring the sustainability and growth of Dubai family businesses by providing technical and administrative support to improve sustainability and facilitate the smooth transition of power. .

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