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Dubai Introduces New Committee To Resolve Family Business Disputes

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Judith Mariya

Published on October 26, 2023, 08:59:49

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family business in dubai, dispute resolution in dubai

Dubai introduces a new committee to resolve family business disputes, to enhance their role in Dubai’s economy. This resolution has been issued under the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of the Emirate of Dubai, the Deputy Prime Minister and Minister of Finance of the UAE, and the First Deputy Chairman of the Executive Council of the Emirate.

The committee will offer uninterrupted operations of family businesses and safeguards their reputation and financial stability while disputes are under consideration.The committee has been established within Dubai Courts to leverage the judicial and administrative capabilities of the Dubai Courts system. 

This strategic move is aligned with Dubai's ongoing efforts to promote the sustainability of family businesses and ownership, recognizing their vital role as economic partners in the Emirate's development.

This vision aims to uphold justice, the rule of law, and the establishment of a comprehensive legal framework supporting the sustainability of family businesses and ownershipThe committee's primary responsibilities include addressing matters such as family ownership contract disputes, termination of family business status, removal from the family business register as per the Family Companies Law, determining the valuation of partners' shares within the family business, resolving disputes related to the right of redemption, and adjudicating issues about changes in share categories within family businesses.

To preserve family bonds among family members, the resolution mandates that when family ownership contracts or the family business's memorandum of association or charter contain provisions for amicable dispute resolution through the Family Members Council, the Committee must refer these disputes to the Council for reconciliation attempts before formal consideration.

Furthermore, the resolution emphasizes the activation of the Center for Amicable Dispute Resolution, an entity affiliated with Dubai Courts, to settle  family ownership and corporate disputes through conciliation and reconciliation. The Committee is precluded from addressing such disputes until they have been submitted to the Center and efforts at amicable resolution have been exhausted.

For any enquiries or information, contact ask@tlr.ae or call us on +971 43493428Follow The Law Reporters on WhatsApp Channels.

 

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