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Corporate & Commercial Contracts

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Economic Substance Regulations (ESR) were introduced in the UAE in March 2019 by virtue of Cabinet Resolution No. 31 of 2019 (Cabinet Resolution). The ESR apply to all companies based in the UAE (onshore and free zones), including branches and apply to financial years starting on or after 1 January 2019. The UAE government has delegated the responsibility to regulate and administer the ESR to the various onshore and free zone authorities (such as the…

There have been continuous discussions among law firms and commentators on whether the Coronavirus (COVID-19) pandemic constitutes a “force majeure” event, which is derived from the principle established in French Civil Law. Some say that the principle of force majeure should be applied in the current crisis, as the conditions of a force majeure event are met: sudden, unpredictable and impossible to prevent. Therefore, a contracting party may be exempted from fulfilling its contractual obligations…

Introduction The recent global outbreak of Coronavirus (COVID-19) has resulted to various challenges for many suppliers and counterparties to deliver on their contractual obligations and has prompted an increasing number of claims and notifications to contracting companies. Now more than ever, companies need guidance on the recourses and forms of relief available to them during these unprecedented times. This article provides high level guidance on citing to Force Majeure provisions in contracts as applicable under…

In February 2020, the Chairman of the Securities and Commodities Authority (SCA) has issued Board Resolution No. (03/R.M) of 2020 which adopts the new Corporate Governance Guide for Public Joint-Stock Companies (the Resolution). The Resolution will come into force on 28 April 2020 and will repeal the previous SCA Chairman Resolution No. (7 R.M) of 2016 on the Standards of Institutional Discipline and Governance of Public Joint-Stock Companies. The Resolution introduces new corporate governance rules…

In September 2018, the UAE issued the Foreign Direct Investment Law (FDI Law) to open up the UAE mainland market to foreign investors in certain sectors of the economy. This was followed by the announcement on July 2019 of the relaxation of foreign ownership restrictions for 122 business activities, specifically in the manufacturing, agricultural and services categories (Positive List), pursuant to the FDI Law. On 17 March 2020, the UAE Cabinet issued Cabinet Resolution No.…