2 June 2016
Article 104 of the UAE Commercial Companies Law (Federal Law No. 2 of 2015) (the CCL) states that provisions relating to joint stock companies (JSCs) apply to limited liability companies (LLCs), unless the law states otherwise.
This provision has been the cause of ambiguity when looking to interpret the full application of the CCL's provisions to LLCs. The Ministry of Economy (the MoE) has now issued some much welcomed guidance on the application of Article 104 by issuing Ministerial Resolution No. 272 of 2016 (the Resolution).
This briefing note explores the Resolution's impact on the CCL to LLCs.