Sharjah announces decision to regulate family businesses, help resolve disputes

The decision also includes regulations concerning ownership, and disposal of shares by partners

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Photo: Sharjah Media/X

By WAM

Published: Tue 1 Oct 2024, 7:08 PM

Last updated: Tue 1 Oct 2024, 7:11 PM

A decision to regulate family businesses within Sharjah was announced by the emirate's Executive Council in a meeting on Tuesday.

As per the decision, family businesses must have an incorporation contract in line with the provisions of the Companies Law.

The initiative aims to establish mechanisms for resolving disputes related to family businesses, and create a legal framework for the organisation and governance of family businesses.

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The decision also seeks to facilitate the business' transition across generations, ensure sustainability, and bolstering contributions to the emirate's economy. This would be applicable to family businesses formed within the emirate, existing companies owned by single-family members, and family enterprises established in free zones, provided these do not conflict with the regulations governing those areas.

The decision includes regulations concerning ownership within family businesses, the disposal of shares by partners, share classifications, and family endowment businesses.

It also includes regulations about the family charter, dispute resolution, the processes for dissolution and liquidation of the company, as well as executive decisions regarding enforcement and effectiveness.

During the meeting, the council also examined the general policies guiding government operations in the emirate of Sharjah and discussed strategies for their enhancement.

The council deliberated on proposals and plans aimed at supporting urban development in residential areas across the emirate, thereby fostering social cohesion and reinforcing family stability for citizens.

The council reviewed a presentation on the academic progress of government employees. The Sharjah Ruler's continuous directives encourage the citizens of Sharjah to study and benefit from available scholarships.

The decision to regulate family businesses was issued in the Sharjah Executive Council's meeting, presided over by Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah.

The meeting was attended by Sheikh Abdullah bin Salem bin Sultan Al Qasimi, Deputy Ruler of Sharjah and Deputy Chairman of Sharjah Executive Council, as well as Sheikh Sultan bin Ahmed bin Sultan Al Qasimi, Deputy Ruler of Sharjah and Deputy Chairman of Sharjah Media Council. The meeting was held at the Ruler's office.

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WAM

Published: Tue 1 Oct 2024, 7:08 PM

Last updated: Tue 1 Oct 2024, 7:11 PM

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