Abu Dhabi: The Ministry of Economy issued a circular to companies emphasising the importance of their commitment to the commercial companies law.
The distribution of the circular coincides with the advent of the meetings of the general bodies of private joint stock companies.
In the circular, the ministry called on private shareholding companies to abide by the provisions of federal law No 8 of 1984 regarding commercial companies and its amendments.
The ministry stressed the importance of commitment to Article 119 of the Commercial Companies Law with regard to the convention of the ordinary meeting of the general bodies of private companies during the four months after the end of the fiscal year.
According to the circular, the ministry also calls for adherence to Article 124 of the law which requires the inclusion of a report on the company's activities and during the fiscal year on the meeting agenda.
The report must include the company's achievements and its financial status along with a report on closing accounts to be reviewed and approved during the meeting.
Discussion of the company's budget and calculations of profits and losses, as well as the election of board members and the appointment of auditors must be included on the meeting agenda. The ministry also emphasised the necessity to abide by the order of issues on the meeting's agenda according to their priority.
It also warned companies not to mandate boards to select and discuss suggestions of the board with regard to cash and share dividends.
Board members shall not be given bonuses if it was decided not to pay cash and share dividends.
Insurance authority
Sultan Bin Saeed Al Mansouri, Minister of Economy, issued the executive regulation of federal law No 6 of 2007 on the establishment of the Insurance Authority.
Fatima Mohammad Al Awadi, Deputy Director General of the authority, said the issuance of the executive regulation to implement the authority's establishment law comes within the framework of the authority's plan to revise and reconsider regulations and instructions regarding monitoring and controlling insurance companies and professions. The regulation includes rules on control of insurance companies and professionals in the insurance field. It includes all details of insurance branches under the umbrella of each type of insurance, and how to set up the board of the insurance authority.
