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The amendments to the MOA as per

the new Federal Law no. 2 of 2015 concerning 

Commercial Companies

 

Federal Law

Deadline extended by one more year

ending on the 30th of June 2017

 

 Following our recent notice regarding the grace period given to 

commercial companies in UAE to comply with the provisions of the new

Federal Law no. 2 for year 2015 concerning Commercial Companies,

which was supposed to end on the 30th June 2016,


ARCA is glad to inform you herein that the UAE Cabinet has extended this period 

in its last meeting, by one more year ending on the 30th of June 2017


The Cabinet decision to extend the grace period by one more year till the end of June 2017
came in response to a proposal from the Minister of Economy after receiving
requests from Departments of Economic Development and the Securities and
Commodities Authority, and also from companies working in UAE for more time to adjust their positions.


The Federal Law no. 2 for year 2015 on Commercial Companies issued on the 1st of April 2015 was put in force on
the 1st of July 2015. In its Article no. 374, the new Law no. 2 of 2015 gave all commercial companies
working in the UAE a one year grace period (ending on 30th June 2016)
to adjust their position
and comply duly and completely with its provisions by amending their memorandum of association
and articles of association to become compliant with the provisions of the new Law.


As per Article 357 of the new Law, the companies that fail to adhere to the new provisions will be subject to
penalties amounting to AED 2,000 for each day of delay, and fines between 10,000 and AED 100,000 as per Article 360.

Failure to adjust the company’s position accordingly before the end of the grace period will result in the company being deemed dissolved as per Article 374.

It is of great importance to note that the above provisions are still applicable but only after the end of the
new grace period which gave the commercial companies working in the country enough time to call for general assemblies and take relevant resolutions to amend their memoranda and articles of association complying with the
provisions of the Law no. 2 of 2015.

 

In this regard, we at ARCA
(AbdulMunem AlRubaie & Partners Chartered Accountants)
are still ready to present our assistance in reviewing and adjusting your memorandum of association and your articles of associations, advising you
and your company on how to comply duly with the provisions of the new Federal Law no. 2 of year 2015