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Salient Changes to the UAE Companies Law

In recent years, the UAE has taken steps to reduce certain restrictions applicable to onshore companies by passing various laws and regulations for the attraction of foreign direct investment into the UAE, by previously issuing Federal Law No. 19/2018 (regarding Foreign Direct Investment) and thereafter Cabinet Decision No. 16/2020 in line with such law (the “FDI Laws”). The UAE recently issued Federal Decree-Law No. 26/2020 (the “Amendment Law”) amending certain provisions of Federal Law No. 2/2015 on Commercial Companies (the “UAE Companies Law”) by setting out the much-anticipated change...
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NOTICE

Notice Kindly be informed, that we have received several calls, that Mr. HAIDAR ABDUL-RASOOL KADHEM, Mr. MAHMOUD HASSAN KHATIB AL NOUFI and others, have used the name and logo of our firm “United Advocates”, as well as the name of the Co-Founder of the Firm, Mr. ABDULLAH AL ZARI. The also used the logos of government bodies for the purpose of committing deception and fraud crimes. Therefore, we deny any relationship or link of our Firm “United Advocates” or Mr. ABDULLAH AL ZARI, with or to Mr. Mr. HAIDAR ABDUL-RASOOL KADHEM, Mr. MAHMOUD HASSAN KHATIB AL NOUFI or any other person or...
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Announcement of Freelancer License in Abu Dhabi

The Abu Dhabi Department of Economic Development has recently announced a new “Freelancer Visa” which shall cover about 48 type of business activities that can be conducted in the Emirate of Abu Dhabi. This new Freelancer License will be available not only for UAE citizens and residents, but also for non-UAE residents. A UAE resident who wishes to practise a similar activity to their regular job will require a prior written approval from their employer accordingly. Applicants who avail this new Freelancer License will also have the option to apply for residence visas, and an office space...
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Amendments to certain UAE Laws & Regulations

The UAE Government has announced various decrees recently by amending some legal provisions in the corporate, criminal, civil, bankruptcy, personal status, and inheritance laws; which has been initiated in line with the UAE’s ongoing endeavors to enhance its legislative foundations to further develop its status as a global destination to attract foreign investment and expertise. Please find below a concise brief of such salient changes: Corporate: Significant changes to the UAE Companies Law were announced, in which as much as 51 articles would be amended with the introduction of 3 ...
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Questions to Ask When an Employer Wishes to Pay a Subcontractor Directly

By Eric Teo – Head of International Practice & Special Projects   What are the questions to consider if an employer wishes to pay directly to a subcontractor - bypassing payment to its main contractor but without taking over the liability of the subcontract?  Lately, I have received an increasing number of enquiries concerning such a situation. The increase could be a sign of the COVID-19’s impact on the UAE’s construction industry, exposing the precarious position of those main contractors who are facing serious liquidity issues. Paying subcontractors directly indeed has its o...
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Is Your Project’s Documentation Ready to Face the COVID-19 Financial Crunch?

Project documents Covid crunch By Eric Teo - Head of International Practice & Special Projects Perhaps the current slow-down in the construction industry (whether in the UAE or internationally) brought on by the COVID-19 pandemic allows industry players some breather to focus their attention to the state of their project’s documents management and records keeping systems. Why is this important? It is important so that parties do not succumb to the harsh reality of their claims (or rebuttal) getting substantially reduced or rejected either during negotiations or in legal proceedings...
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COVID-19 – The Impact on Agency and Distribution Agreements: FAQ Agency Agreements

- By Avv. RA Dr. Massimo Fontana Ros Each principal who decides to benefit from the activity of a commercial agent makes a prior assessment of the relevant business costs, in particular regarding commission, expense reimbursements and amount of the indemnity for termination. Therefore, it is quite clear that during the exceptional measures introduced by the Italian Government due to the COVID-19 emergency, the most frequently asked questions by agents and principals are the following: I) Can the principal demand that the commercial agent still visits potential clients, claiming that in th...
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The Impact of the so-called “Decreto Liquidità” on Corporate Matters in Italy

- By Avv. RA Dr. Massimo Fontana Ros Decree-Law No 23 of 8 April 2020 (hereinafter referred to as “Liquidity Decree”) provides for a series of measures aimed at safeguarding business continuity throughout the emergency phase, particularly in respect of businesses that before the crisis were considered viable and that presented an ongoing prospect in terms of business continuity. A table summarizing the changes applied to corporate matters by the Liquidity Decree can be found as follows.   Provisions relating to reduction of Share Capital (Article 6) Initial measures have been in...
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COVID-19 and its possible classification as a Material Adverse Effect

What is a Material Adverse Effect? Interpretation of a Material Adverse Effect (MAE) may vary depending on a certain situation; as it is used to measure an effect of an event, and how it may or may not impact a small business or a larger corporation in various aspects. When related to finance, a MAE occurs when the following 3 matters are affected: A particular business and its assets, properties, liabilities, operations, financial conditions or prospects for the future. A loan contract, and its need to perform its obligations under any clause. The validity or enforceability o...
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Precautionary Measures by the UAE government to Curb the Spread of Novel Coronavirus

Ministerial Resolution No. (279) of 2020 on Employment Stability in Private Sector during the Period of Application of Precautionary Measures to Curb the Spread of Novel Coronavirus. Federal Law No. (1) of 1972 on the Functions of the Ministries and Powers of Ministries and its amendments; Federal Law No (8) of 1980 regarding the Organization of Labour Relations; and as part of the States efforts to combat and contain the spread of Covid-19; and upon the proposal of the Undersecretary of Human Resources Affairs; and for Public Interest. They have established that all entities working in ac...
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