UAE Cabinet approves draft law on companies

Abu Dhabi: The Cabinet on Sunday approved the new draft law on companies, which aims to enhance the flexibility and strength of the national economy, and keeping abreast with global economic changes by preserving a continuous and balanced growth in all economic sectors in the UAE.

 The law was approved during a Cabinet meeting chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Shaikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, was present.

Shaikh Mohammad stressed that developing economic legislations is within the government’s strategic approach to add more flexibility for setting up all types of companies and enhancing the governance of companies listed in the stock market.

The new law sets up a general framework for public joint-stock companies to ensure the rights of all stakeholders, transparency, disclosure of financial statements, and the efficiency and integrity of boards of directors.