The UAE Cabinet Resolution No. 78 of 2022 Issuing the List of Administrative Penalties for the Acts Committed in Violation of the Provision of Federal Law No. 32 of 2021 Concerning Commercial Companies, was issued on the 16th of August 2022 and came into force on the 31st of August 2022.

The provisions of this resolution apply to commercial companies, foreign companies, branches, and representative offices of foreign companies established in the State, subject to the commercial companies law no 32 of 2021. 

In addition, the provisions of this resolution apply to foreign companies established as a centre for the exercise of any activity in this country or to foreign companies establishing branches or representative offices in the country.

Furthermore, the provisions of this resolution do not apply to companies exempted by commercial companies law no 32 of 2021, such as professional, private, and foreign companies and companies established in free zones. 

Examples of the Violations listed in Cabinet Resolution No. 78 of 2022

In reference to Article 173 of federal law no. 32 of 2021, in case of failure to convene the Annual General Assembly, the following penalties shall be applied.

Limited Liability Company Administrative Penalty 

If the Director, Chairman of BOD, or their representative in the company fails to convene the company's annual general assembly to meet within the timeframe specified by law, decree, or by agreement with the competent authority, or who does so before obtaining the approval of the competent authority they may be fined (AED 5,000).

Private Joint Stock Company Administrative Penalty

If the chairman of BOD does not invite the company's annual general assembly to convene within the timeframe specified by law or does the invitation without first obtaining the approval of the ministry. The fine would be (AED 30,000).

Public Shareholding Company Administrative Penalty

If the chairman of BOD or his representative doesn't invite the company's annual general assembly to convene within the timeframe specified by law. In that case, the fine would be (AED 50,000) fifty thousand dirhams.

For the complete list of penalties, please visit Westlaw Middle East