UAE bankruptcy law expected within weeksStaff Writer | September 6, 2016
The Ministry of Finance, MoF, has reviewed the final draft of the Federal Bankruptcy Law for the United Araab Emirates.
Emirates UAE MoF has reviewed the final draft
The UAE Cabinet will decide on the number of members and entities that will represent the committee and will administer the committee’s law and its procedures.
The committee is in charge of overseeing the procedures of financial restructuring outside the scope of the court, appointing experts in the field of financial restructuring, establishing an electronic record of individuals issued against them a bankruptcy ruling.
The law works on identifying different ways to avoid bankruptcy cases and liquidation of the debtors’ funds, a comprehensive financial restructuring outside the scope of the court, composition procedures and the possibility to get new loans under terms set by the law.
The law will also prevent individuals from bypassing the law as there is a number of punishments including a five year prison sentence as well as fines of up to a million Dirhams.
The law includes raising credit levels and financial guarantees within its legislative priority to strengthen confidence among investors and boost the economy by enabling the financially distressed businesses to restructure, and pay their debts and obligations without disrupting the production process in accordance with a transparent legal framework.
This makes it the only law which includes those specifications in the Arab region. ■