It is known that there is no tolerance for crimes in the UAE. The nation takes stern action on the offenders. Under the UAE laws, there are different laws for different types of crimes. One can visit this website to check out the different types of laws in UAE.
By getting in touch with experts at SM Law Firm by visiting this website, they can easily know more about the legalities.
This article will talk about the new bankruptcy law in UAE –
In the year 2016, the UAE’s Cabinet has approved the new law bankruptcy law. Before the implementation of the law, business owners and managers would be criminally penalized if their business failed. The penalty also included serving a jail term. This has made a lot of people flee from UAE because of the debts and unpaid loans.
Though the previous laws and articles in UAE dealt with issues, they were mostly addressing smaller companies. However, with the implementation of the new law, there is leverage on the penalty.
With the new law, there is a better legal framework that helps distressed companies in UAE to avoid situations of bankruptcy and liquidation. The new law also attempts to guard the rights of both the creditors as well as the debtors.
This new law applies to the organizations that are established under Commercial Companies Law. The companies may be fully owned or partly owned by the local or federal government, and also the companies established in the free zones in the UAE.
However, one thing is to note is that the new law doesn’t apply to businesses registered in DIFC and Abu Dhabi Global Market
If you are looking for a legal counselor who will help you out with bankruptcy and the laws surrounding it, contact SM Law Firm.