Dubai: The Federal Public Funds Prosecution is conducting investigations with the stakeholders of Union Properties based on a complaint raised by the Securities and Commodities Authority regarding financial violations committed by the company’s Chairman alongside some of its stakeholders.
The violations include the sale of one of the company’s real estate assets at a price less than its actual price, in addition to concealing the name of the real beneficiary using forged documents.
In August, Dubai’s based developer had confirmed that reconstituting the Board of Directors will be one of the topics on the agenda at the next general assembly meeting, which has been called for on October 26. This was brought on by two groups of UP shareholders – each representing 5 per cent of the shareholder base - filing appeals for such a change.
Union Properties confirmed that it had received an “email from the Securities & Commodities Authority” to introduce the proposal for the dismissal of “all the members of the Board of Directors”. The developer had been talking of a turnaround plan that would help it reclaim its status as one of the biggest names in the local property market.
What to expect?
It will be up to the regulator SCA to give the go-ahead to list the shareholders’ proposal on the agenda for the October 26 general assembly.
Until a final decision is taken by a majority at the general assembly, the “members of the Board of Directors will exercise their current duties”, the developer confirmed.