Zayed issues decree to set up Dh300m company

President His Highness Sheikh Zayed bin Sultan Al Nahyan, as Ruler of Abu Dhabi, has issued a decree establishing the National Investment Corp (NIC) with a capital of Dh300 million.

The NIC will be established and headquartered in Abu Dhabi, under the patronage of Dr Sheikh Sultan bin Khalifa Al Nahyan, Chief of the Abu Dhabi Crown Prince's Court and Honorary Chairman of Abu Dhabi Chambers of Commerce and Industry.

The capital will be divided into 30 million shares with a value of Dh10, according to a copy of law No.1/2002 on the corporation. This law is an amendment of articles 4, 7, 22 and 23 of local Law No.5/1999 on investment in the emirate.

The amendments were earlier approved and issued by Sheikh Zayed, for implementation on the day it was published in the official gazette.

Half of the shares will be floated for national employees working in Abu Dhabi's government organisations.

However, according to the law, those Abu Dhabi government employees whose monthly salaries or pensions exceed Dh5,000, or those who are receiving monthly financial aid from the government, cannot buy the shares.

The law also stipulates that these employees can only buy a maximum of shares worth Dh5,000, which cannot be transferred or sold.

Abu Dhabi International Marines Club will be allocated a quarter of the total shares worth Dh7.5 million for its contribution in the form of land for building the NIC premises at the Breakwater on the Corniche.

The remaining quarter of the shares (worth Dh7.5 million) will be allocated to Dr Sheikh Sultan for his sponsorship and patronage of the project.

According to the law, the profits will be distributed by a decision from the Ruler as per percentage.

The Government of Abu Dhabi will redistribute the shares mentioned in clause one of Article 4 whenever required.

The corporation will be managed and run by a board of directors, which will lay down the establishment foundation and formulate the rules governing the NIC, including the financial, the administrative and the staff's recruitment affairs and policies.

According to Article 7, the corporation will participate in regional and the international exhibitions, conferences and meetings. It will also engage in signing agreements with similar organisations here and abroad.

The board will be responsible for preparing annual budgets and final account reports for the corporation's fiscal year in due time. It will appoint a general manager and fix his salary and other benefits.

The board will execute the corporation's decisions and prepare the annual report on the overall organisational activities and present it before an annual general assembly.

Approval of dividends to shareholders of more than the corporation's capital during the years when it does not make enough net profits will be shared in accordance with the level decided by the Ruler.

Article 22 stipulates that 10 per cent of the net profit will be deducted yearly and be placed as a reserve unless the general assembly decides otherwise, to deduct more on the advice of the board.

"This deduction does not start before the lapse of five years from the date of establishing the corporation," the law dictates.

According to the law, the deduction will be stopped once the reserve reaches half of the corporation's capital, unless decided by the general assembly.

Under Article 23, a committee will be formed to receive and sort out purchasing orders presented by shareholders working in Abu Dhabi government organisations.

The committee will then present the results and lists of the eligible shareholders so that right decisions are made, according to the law.