Dubai’s Sheikh Maktoum forms new committee to resolve family business and ownership disputes in the emirate.
03 November 2023, 12:00 AM
30 November 2023, 12:00 AM
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and Chairman of the Dubai Judicial Council, has issued a resolution for the formation of a ‘Family Business and Family Ownership Disputes Settlement Committee’ in Dubai, to ensure the continuity of family businesses and prevent any harm to their reputation or financial position while a dispute is being considered.
The decision is in line with fast-paced measures taken in Dubai to boost family business and ownership sustainability, and maintain the role of family businesses as partners in the emirate’s economy.
“We continue to work to create a business environment that supports the sustainability of family businesses, ensures ownership continuity and helps improve their governance and contribution to Dubai’s economy as key partners in development and a leading destination for promising investment opportunities,” Sheikh Maktoum said.
He pointed out that the ‘Committee for Dispute Settlement of Family Businesses and Ownership’ will comprise financial experts who will work alongside judges to provide specialised judicial expertise.
“The committee will consider and settle all disputes related to family businesses and family ownership while preserving their continuity and preventing the interruption of its work or harm to its reputation or financial position throughout the period of consideration of the dispute. Dubai was, is and will continue to be an incubator for companies and family ownership and a supporter of effective justice,” he added.
A judge with a rank that is not lower than an appeal judge will be appointed as the committee's chairman. It will also include two members with experience and competence in the legal, financial and family business management fields, who will be appointed as per the recommendation of the Director General of Dubai Chambers.
Based on the decision issued, the committee can consider and settle all disputes arising from the implementation of the family ownership contract, or between partners in the family business or between these partners and family members.
Its functions also include considering and adjudicating matters related to the expiry of the family ownership contract, the termination of the family business status, or its removal from the family business register established in accordance with the Family Companies Law, as well as determining the price of the partners' shares in the family business, settling disputes related to the right to redeem them, and considering and deciding on matters related to the cancellation of the change in the categories of shares in family businesses.