Article Title

Family Corporate Governance in the United Arab Emirates: Challenges and Prospects: Applied Legal Study

Authors

Omar Muhammad Al-Owais Mr., Legal Researcher, College of Law University of SharjahFollow
Imad Al-Din Abdel-Hai prof., Professor of Commercial Law Dean of the College of Law, Sharjah UniversityFollow

Abstract

This study revolves around the most prominent challenges facing the governance of family companies in the UAE, represented by the inheritance of employment, the lack of strategic planning, and the slow pace with keeping up with new digital technologies. Added to these challenges the economic instability, the changes in the structure of these companies and thus their ability to overcome these challenges throughout their life across successive generations. This succession may conduct to the termination of these companies due the different commercial and organizational visions of each generation, as each of them considers that his vision is the most suitable for morning the company. By this study, we will try to extrapolate and to analyze the texts of the Federal Commercial Companies Law No. 2 of 2015 as well as the project of law on the organization of family ownership in Dubai of 2018, in order to know the extent of organization and governance of family companies. In the other hand, the possibility to establish companies in the Dubai International Financial Center oblige us to study the status of governance of family companies under the law and executive regulations of this center which is in line with the global financial systems and more specifically with the Anglo-American system based on contract to UAE commercials rules on Common Law Rules. The governance of family companies, as important as any Commerciale company, as it constitutes a strategic necessity in view of the crises in financial markets, by implanting a set of controls, norms, ethical and professional principles to enhance trust and credibility between the family partners. This logic impose to these companies to take the initiative of governance intend of still waiting the interference of the issuance of specific standards of governance to the government.

Recommended Citation

Al-Owais, Omar Muhammad Mr. and Abdel-Hai, Imad Al-Din prof. (2020) "Family Corporate Governance in the United Arab Emirates: Challenges and Prospects: Applied Legal Study," مجلة جامعة الإمارات للبحوث القانونية UAEU LAW JOURNAL: Vol. 82: No. 82, Article 3.
Available at: https://digitalcommons.aaru.edu.jo/sharia_and_law/vol82/iss82/3