Dubai: A new chairman will take over at Union Properties, the Dubai based developer, only after April next year. This follows the withdrawal of a resignation submitted by incumbent chairman Nasser Butti Omair Bin Yousuf Al Mheiri.
If Al Mheiri had not done so, it would have meant the developer having a third chairman in 28 months.
Union Properties had issued a statement to Dubai Financial Market that submitted his resignation “due to personal circumstances”. The Union Properties board was to meet to take up the request. But a second statement issued said the Al Mheiri will see out his full term up to April 2020.
Social media agog
Local social media circles were in overdrive speculating about Al Mheiri's reasons for the resignation, which led to Union Properties issuing a sharply worded statement, also on DFM, against such “rumour” spreading.
“Union Properties has denied what is being circulated on some social networks in relation to the company’s business activities and its board of directors, which would negatively affect trading in UAE capital markets as well as the economic security,” the statement said.
Its Managing Director, Ahmad Khoury, said: “The company operates in accordance with UAE laws and regulations and as per the Securities and Commodities Authority and Dubai Financial Market regulations.
“All transactions are subject to external audits by independent companies approved by competent authorities. The company will take all legal procedures and will file a case to prosecute rumour mongers and refer them to the competent authorities.
“The UAE laws hold accountable all promoters of rumours and false news, and economic rumours are more dangerous to society because of the resulting losses to companies and investors, and the damages to the reputation of companies and the economy.”
2018 board shake-up
It was in April last year that Al Mheiri assumed the reins at Union Properties, and then led the ouster of the erstwhile chairman, Khalid Bin Kalban, who was instrumental in staunching mounting losses at the developer after the 2009 property downturn. The developer under Al Mheiri then reconstituted the board of directors bringing in new faces.