HH Sheikh Mohammed Enacts Updates to DIFC's Companies Law and Insolvency LawPress Release 18 Sep 2009 09:57 am
HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has enacted updates to the Dubai International Financial Centre’s (DIFC) Companies Law and Insolvency Law.
The updates in the Companies Law cover certain registration requirements specified by the DIFC Registrar of Companies while the updates to the Insolvency Law incorporate changes in applications and procedures for winding up Protected Cell Companies (PCCs). PCCs are self-insurance structures that provide a simple and cost-effective solution to companies wishing to establish a captive insurance company.
The updates to the Companies Law include the abolishment of the procedure for approval of a company’s Articles of Association by the DIFC Registrar of Companies and the requirements for recognised companies to file an annual return. It also provides clarifications on the right of shareholders and directors to participate in shareholder or directors meetings. The Insolvency Law has been updated to include minor amendments arising from the introduction of the proposed updates to the Companies Law and the amended Insolvency Regulations of 2009.
HE Dr. Omar Bin Sulaiman, Governor of the Dubai International Financial Centre said: “The updates to the two laws form part of DIFC’s efforts to constantly update its legal framework to meet the changing needs of the industry and to stimulate the growth of new sectors and niche areas in the financial services industry. As DIFC develops further as a leading global financial hub.under the leadership of HH Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of the DIFC, we are committed to provide a productive and secure environment for the development of sectors that can add significant value to the region’s financial services industry.”
DIFC also issued new regulations that incorporate the updates to the Companies Law and Insolvency Law. The new regulations will help the insurance industry in offering innovative new products and services out of the financial district. It also gives them a degree of operational flexibility not presently available in other jurisdictions in the region.
The enactment of the laws comes following the completion of a public consultation process, as part of which DIFC invited public comments to proposed updates in the laws.