Arabian Business, 30 June 2022: The UAE’s Economy Minister has announced details of a draft Commercial Agencies Law.
If approved, public joint-stock companies and public legal entities with a minimum 51% national capital contribution will be able to act as commercial agents.
Only UAE nationals will be able to act as commercial agents as is the case at the moment.
The existing law on regulation of commercial agencies imposes some restrictions on the cancellation of commercial agencies, even after the contract term has expired.
Under the new law, the agency contract will terminate on the expiry of the contractually agreed term.
The Minister added a draft law on cooperatives will allow various forms of cooperatives to be established in the country. This will enable them to benefit from the economic and development opportunities offered by this sector and boost its contribution to GDP.
It specifies the penalties which will be imposed on anyone who violates the law. These include fines of between 50,000 and one million AED.
A fine of between 200,000 and one million AED will be imposed on anyone who provides false or misleading statements in the articles of incorporation, annual statements and reports, financial statements and financial position or financial statements.
Additional reporting from Al Bayan on 29 June 2022. For full story, click here.
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