MOA amendment as per the new Commercial Company Law

MOA amendment as per the new Commercial Company Law

Don’t worry if you have not revised your MOA.

 

 The companies who have not yet amended their Memorandum Of Association (MOA) following the measures of the new Commercial Companies Law need not worry now. The deadline was set earlier for 30th June 2017 by the Ministry of Economy for necessary amendments but now it has been warded off.

Following the announcement by the Ministry of Economy there is no target time that UAE companies have to follow to make changes in their MOA with regard to the new law.

When the new commercial law was introduced on 1st July 2015 it implicated that the existing companies in the UAE were supposed to abide by the new MOA format by June 2017 else they would have dealt with a find of Dirhams 2,000 per day and in extreme cases dissolution.

The new commercial companies law laid importance on improving regulatory forms within LLC’s and Joint Stock Companies. They anticipate to alter the business environment by uplifting the position of competition and corporate regulations to a global level.

The ministry said in its Ministerial Order No. 694 of 2016 that memorandum of association or articles of association of existing companies shall remain valid. “Any expression, text or article stated in such memorandum of association or articles of association inconsistent with provisions of law shall be deemed amended and replaced by texts of the law from the date this order is valid.” “Companies shall comply with such amended texts and shall deemed conciliated its positions and consistent with Article No. 374 of the law.”

For new companies applying for the consent to its formation in compliance with the new commercial company’s law (CCL) “shall include in its memorandums of association the provisions stated in law and any provisions requested by the competent authority to be included in such memorandum of association or articles of association,” an announcement said.

The most important amendment in the law is for Joint Stock Company or Limited Liability Company to have one or more auditors every year to do the auditing of the business entity. To give a precise report of the profit and loss of a business association they should apply the International Accounting Standards and practices.

Al Tamimi said “The new law also introduces new concepts such as allowing sole shareholder companies either in limited liability or private joint stock companies and addresses employees incentive share schemes,”

Source ~ Khaleej Times

 Emirates Chartered Accountants Group provides Audit and Assurance services, Accounting and Financial services, Management Consultancy, Company Incorporation, TAX/VAT advisory and implementation services, etc. ( https://www.emiratesca.com/)

 

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