Abu Dhabi’s Department of Economic Development (DED) has reminded listed companies to amend their articles of associations and bylaws to comply with the UAE’s new Commercial Companies law by June, or face dissolution.
Under the terms of the new law, which came into effect last July, listed companies across the UAE were required to update their articles of association within 12 months.
“The DED is now notifying all public joint stock companies of this mechanism so they can adjust within the grace period legally given to them, which ends on June 30, 2016,” the DED’s acting undersecretary Khalifa Al Mansouri said in a statement on Sunday.
Mandatory changes under the terms of the new law include new rules regarding pre-emption rights, general meetings procedures and expert valuation of shares.
The Securities and Commodities Authority sent a circular to all listed companies this month regarding the need to amend their articles of association. The amended articles require approval at a company general assembly meeting by shareholders holding 75 per cent of a company’s shares.
Failure to amend the articles of association and bylaws by the end of June will result in the dissolution of the company.
Several listed entities have already complied with the requirements.
National Bank of Abu Dhabi said in a stock announcement on Sunday that it had performed the necessary updates to its articles of association and bylaws, which are expected to be published in the UAE’s official gazette.
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