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New Dispute Resolution Committee Established for Family Business in Dubai

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One of the main objectives of the Family Businesses Law, Federal Decree by Law No. 37 of 2022 ("the Law"), is to establish a comprehensive legal framework for the ownership and governance of family businesses in the UAE and provide mechanisms for the resolution of family disputes. Hence, Art. 20 of the Law stipulates that every Emirate should form its own Committee for Dispute Resolution. Dubai is the first Emirate to establish such Committee.

The Dubai Judicial Council has issued its resolution establishing the new committee, Administrative Resolution No. 14 of 2023, and determining the competences and powers entrusted to it, in order to perform its tasks and achieve the objective of its formation.

 

Committee's jurisdiction. The Committee will be entrusted with resolving the disputes arising in relation to Family Businesses matters. Therefore, it will be competent for considering and deciding upon all disputes arising:

  1. From the Family Ownership contract; or
  2. Between shareholders in a Family Business; or
  3. Between the shareholders and family members.

However, before claiming jurisdiction over the said disputes, the Committee shall help resolve the disputes amicably through referring them to special Council (if mentioned in the Family Ownership contract) or to the Centre for Amicable Settlement of Disputes established under Dubai Law No. (18) of 2021 AD.

If an amicable solution cannot be reached, the Committee will then examine the dispute and rule upon it.

 

Committee's powers. For the purposes of resolving the disputes, the Committee will be able to exercise the following competences and powers:

  1. Take the necessary preventive and urgent measures it deems appropriate to maintain the continuity of the Family Business.
  2. Seek the assistance of experts and persons specialized in family businesses matters.

 

Committee's decisions. The Committee's decision are subject to appeal before the competent court in accordance to the provisions of the Federal Civil Procedures Code.

 

Enforcement. The Committee will commence its activity as of January 2024 AD.

Nadim Al Jisr
By Nadim Al Jisr
Editorial Lead

Nadim Al Jisr joined Thomson Reuters in 2014 as a Content Specialist, then moved to oversee the Westlaw Middle East platform and manage its growth. Nadim holds a Bachelor’s Degree in Law and has more than 10 years of experience as a legal consultant and litigator in Lebanon, Saudi Arabia and UAE. Nadim is native Arabic speaker and proficient in English and French. Nadim is currently completing his Master’s Degree in Law. Nadim is currently the Editorial Lead heading the MENA Content Team.

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