Deadlock Resolution in Private Companies in the UAE: A Comparative Study (Digital Version)

In any contractual arrangement such as a partnership, encountering differences or reaching a deadlock that could disrupt a relationship is not unexpected. In the life cycle of a business, at some point, it is almost inevitable. How this can be resolved within the existing UAE legal framework and the impact on private companies are important issues that need to be addressed.

This subject has become more important in the UAE in recent years as a result of the changes and liberalisation of the FDI system which were introduced by amendments to UAE company law brought in by Federal Decree-Law No. 32/2021.The aim of this book is to help preserve the integrity, continuity, and value of deadlocked private companies for the benefit of companies, joint ventures, shareholders, employees, third-party contractors, and the wider UAE economy and its investment regime. It assesses the extent to which the UAE federal mainland legal system is equipped to provide sustainable legal solutions to shareholders’ deadlocks in private companies. It considers what rights minority and majority shareholders have in a company where there is a deadlock; and the extent to which the interests of shareholders’ groups, the company, and other stakeholders, need to be balanced, from the perspective of the modern and comprehensive stakeholders and public interest regulation theories.

It considers whether (and how) Federal Decree-Law No. 32/2021, and the UAE courts deal with these deadlocks and disputes, and the viability of any existing statutory solutions.

It compares solutions to this problem in the UAE, to the extent they exist, with deadlock prevention and breaking mechanisms and termination routes offered or practiced under the UK law..

In particular, the role of contractual legal tools, such as shareholder agreements have been assessed along with their validity and viability when used to exit a shareholder from a deadlocked company. Appropriate deadlock resolution mechanisms that can work under the UAE legal system have also been considered.

The book also contains interviews with carefully selected senior lawyers, shareholders, and directors of private companies on the subject.

The aim has been to provide practical guidance on important problems in order to assist shareholders, directors, companies, lawyers, and legislators.

Upon purchase, you will receive an email with instructions to fullfill this order.