Monday, July 6, 2015

UAE Moves Towards Enacting New Insolvency Law


Tue., July 7, 2015

The long-awaited new insolvency law has taken a big step towards becoming a reality after being approved by the Cabinet, The National reported. Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, said on his website that the proposed draft law includes flexible strategies to bail out businesses that have encountered financial troubles that might lead to bankruptcy. “The draft law aims to regulate accumulated debts, eases restructuring of companies as well as support troubled businesses,” he said. “The draft law aims to mitigate risk of bankruptcy and ensure a safe and attractive business environment in the UAE that nurtures and supports investments.” The new law, which was approved on Sunday, is reported to be largely based on French insolvency practices, drawing on a number of provisions from German law, as well as legal codes from countries such as the Netherlands and Japan. Significantly, the new law is reported to contain groundbreaking provisions regarding the decriminalisation of bounced cheques.

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