Dubai's Pioneering Legislation: A Milestone for Family Companies and Dispute Resolution

Dubai is set to redefine the game for Family Companies and Family Property Ownership, with groundbreaking legislation taking effect on 1, January,2024.

Introducing the Dispute Resolution Committee: Dubai is set to establish the "Dispute Resolution Committee for Family Companies and Family Property Ownership," a judicial entity poised to effectively manage and adjudicate disputes intrinsic to family enterprises.

Facilitating Amicable Resolutions: This legislation places a strong emphasis on fostering amicable dispute resolutions. Disputes will be initially referred to conciliation boards, composed of family members or shareholders as per the Family Property Ownership Contract, memorandum of association, or the family charter. Alternatively, in the absence or failure of conciliation boards, matters will be escalated to the Centre for Amicable Settlement of Disputes before pursuing legal avenues.

Committee Jurisdiction and Oversight: The Committee will wield jurisdiction over disputes arising from Family Property Ownership Contracts, conflicts between partners within a Family Company, or disputes involving family members. This comes into play when the Centre for Amicable Settlement of Disputes is unable to facilitate an amicable resolution.

Appellate Measures: Decisions rendered by the Committee are subject to appeal in the competent court, aligning with the stipulations of Federal Decree-Law Number 42 of 2022.

Proactive Safeguards: In an effort to proactively safeguard Family Property and Family Companies, the legislation empowers the Committee to take preventative measures. This ensures the uninterrupted operation of family-owned businesses during the dispute resolution process.

UAE’s Dedication to Family Businesses: This legislative development underscores the UAE's unwavering commitment to supporting family businesses, offering flexible options for succession planning and wealth protection. It establishes a structured framework for efficient resolution of family business and property disputes in Dubai, aligning with our nation's dedication to fostering a conducive environment for family enterprises.

Stay informed as we witness Dubai's legal landscape evolve to provide robust solutions for family businesses. #LegalInnovation #FamilyBusiness #DisputeResolution #DubaiLegislation #LawFirmUpdates