Regulatory & Legal Updates

Throughout the UAE, a common frustration exists with insolvencies due to its time-consuming nature and significantly low recovery rates, which stemmed from the outdated governance of insolvency that made it an offence for a company to fail to petition for bankruptcy within 30 days of the date of suspension of payment of its debts, and criminal proceedings could be taken against the directors of a company for failing to initiate and apply for corporate bankruptcy.

However, the relatively new Federal Law No. 9 of 2016 on Bankruptcy has shed light on the treatment of companies in the UAE facing financial difficulties.

Hadiel Hussien and Moh’d Nedal Dajani bring a certain level of clarity to the processes available to such companies.

Read the full article Mondaqor LexisNexis.