Ask Gulf News: Who sets Share prices in a Dubai family company dispute?

Question: I am a shareholder in a family business in Dubai. I want to buy more shares and we as shareholders, have a conflict regarding determining the price of these shares. What procedure should we take for such matter? Please advise. 

Answer: You have to file a case in front of the” Centre for Amicable Settlement of Disputes (CASD), which will transfer it to the “Tribunal for Settlement of the Disputes of Family Companies and Family Property in the Emirate of Dubai” which has the jurisdiction to determine such shares’ price, in case the Centre for Amicable Settlement of Disputes (CASD) fails to settle the same amicably. 

According to Article (4) of the Resolution No. (14) of 2023 Forming the Tribunal for Settlement of the Disputes of Family Companies and Family Property in the Emirate of Dubai (the Tribunal will have jurisdiction to consider and determine all the Disputes arising from Family Property Contracts, or arising amongst the shareholders of Family Companies or between these shareholders and family members, where the CASD fails to settle the same amicably. In particular, the Tribunal will have the jurisdiction to: 1. consider and determine all matters related to the termination of Family Property Contracts; or the dissolution of Family Companies, or striking them off the register created in accordance with the Family Companies Law; 

2. determine the prices of the shares of shareholders in Family Companies, and determine any Disputes related to the right of redemption of shares; and

 3. consider and determine all matters related to cancelling any changes in the classes of shares in Family Companies.)