New law to regulate family businesses in Dubai
The law, which defines the terms of the family ownership contract, and the powers and obligations of its manager, enters into force
A new law providing a clear legal framework to regulate family-owned businesses and facilitate their smooth transfer between successive generations has been promulgated in Dubai.
The law is "optionally" applicable to existing and new family ownerships, including corporate equity securities and proprietorship. Family ownership in public joint stock companies and movable and immovable property are excluded from this law
According to the decree, the validity of a family ownership contract can be extended up to 15 years. It can be renewed for a similar term following the agreement of all concerned parties. The law also regulates the articles of the family ownership contract, the business's structure and management, the formation of the board, the authorities and responsibilities delegated to the board and management as well as the management's powers and limitations.
As per the law, for the family ownership contract to become legally binding, all parties of the contract must be members of the same family and have a single common interest. "Furthermore, the contract must clearly define the share of each member, and parties of the contract must own all the legal rights of the monies and assets that are under the purview of the contract."
ABOUT THE AUTHOR
Ihab is an Italian attorney-at-law and expert in the aviation sector. He has been engaged in commercial and regulatory law practice for many years, with a focus on aviation.
He has an extensive experience in high-profile litigation, aircraft financing and leasing, aviation regulation, aircraft accident investigations and policy & business aviation issues.
During his career, he has been actively involved in a full range of legal matters arising in the aviation industry, including drafting aviation legislations, participating in major Privatization and Public–Private Partnership projects, delivering regulatory consultations & proceedings, handling general aviation and commercial issues including sale, purchase and lease of aircraft transactions, aircraft & air navigation services’ insurance and reinsurance, and other environment, security & safety issues.
Ihab has addressed numerous conferences on aviation law and aircraft financing & leasing in the Middle East, Europe and Canada, and published on a variety of issues, including commercial aviation developments, environmental regulation impacting the aviation sector and the Cape Town Convention and its Aircraft Protocol.
He is a member of ICAO’s Commission of Experts of the Supervisory Authority of the International Registry (CESAIR) for the purposes of the Cape Town Convention (CTC) and the Aircraft Protocol.