{"id":3841,"date":"2020-07-27T08:07:27","date_gmt":"2020-07-27T08:07:27","guid":{"rendered":"https:\/\/alriyamiadvocates.com\/?page_id=3841"},"modified":"2020-07-27T08:07:27","modified_gmt":"2020-07-27T08:07:27","slug":"mergers-acquisitions-dubai-uae","status":"publish","type":"page","link":"https:\/\/alriyamiadvocates.com\/practice-areas\/mergers-acquisitions-dubai-uae\/","title":{"rendered":"MERGERS AND ACQUISITIONS"},"content":{"rendered":"<p>[vc_row][vc_column][vc_column_text]Mergers and acquisitions process entail several key businesses, intellectual property, human resource, financial and legal issues. To successfully navigate a sale of a company, it is very important to understand the dynamics and issues that could arise and are expected to be encountered throughout the process.<\/p>\n<p>In this article, we provide guidance on key points to consider in mergers and acquisitions (M&amp;A) law in United Arab Emirates.<\/p>\n<p>UAE Commercial Companies Law sets out the rules for transformations, merger and acquisitions of companies. In addition, Corporate Governance Code and other circulars and regulations issued by Security and Commodities Authority is being observed by listed companies in UAE. However, some onshore companies adhere to regulations that may differ from Commercial Companies Law. For instance, companies that are:<\/p>\n<ul>\n<li>Wholly owned companies of federal and local government<\/li>\n<li>Those are expressly excluded by resolution issued by the federal cabinet; and<\/li>\n<li>Energy or infrastructure companies wherein 25% of the capital is directly or indirectly being held by federal or local government<\/li>\n<\/ul>\n<p>It is also important to note that, Free Zone companies are not necessarily governed by the Commercial Companies Law, as they are established and granted by virtue of different levels of legislative authority &#8211; the competent free zone authority generally have precedence over laws applicable thereof.<\/p>\n<p>Nevertheless, one of the most pointed out issue being considered in M&amp;A are questions in regard to restrictions on share transfer. <a href=\"https:\/\/u.ae\/en\/information-and-services\/business\/business-regulations\">Under Federal Law No. 2 of 2015<\/a>, shareholders of limited liability companies (LLCs) are given a leeway to invoke statutory pre-emption rights for share transfers &#8211; rights granted cannot be waived, unless otherwise approved and agreed upon by all shareholders at the time of transfer. On the contrary, private joint stock companies (JSCs) and shareholders of free zone entities do not enjoy the same statutory pre-emption rights on transfer of shares. However, shareholders in free zone companies can agree and reduce these restrictions in the company\u2019s articles, memorandum of association or shareholder\u2019s agreement. In addition, transfer of share in free zone companies requires approval from the relevant free zone authority.<\/p>\n<p>In passing, most common way of acquiring private owned company is through share purchase or asset purchase. It can also be done through statutory merger which is usually not commonly resorted to. Main advantage of share purchase could be the target company remain as it is, and the process of transferring shares is generally straightforward.<\/p>\n<p>In M&amp;A, another commonly asked question pertains to the duration of the process and how much time it takes to effectuate private M&amp;A transaction \u2013 to larger extent, this depend on the parties. As an overview, the administrative procedure may require notarization of transfer agreement, registration of amendments to the articles of association with competent authorities, in which case both actions can be handled at rather short period. Not unless, the process requires legalising documents issued by foreign authorities.<\/p>\n<p>Negotiating and executing the transaction agreement will likely be the central part of the M&amp;A transaction. Hence, we have listed the main and relevant documentation needed:<\/p>\n<ul>\n<li>Submission of notarized shareholder\u2019s resolution approving a share of asset transfer agreement to the commercial register<\/li>\n<li>Identification documents (e.g. passport for individuals whereas constitutional documents for corporate entity along with certificate of good standing and shareholder resolution approving the transaction). These documents must be legalized according to the procedures agreed between UAE and the country of origin of the buyer.<\/li>\n<\/ul>\n<p>M&amp;A process entails very extensive process that requires input from specialist legal experts. The office of Reliance  offers our expertise in all aspects of M&amp;A practice from preparation and negotiation process, including legal advice on end deal structures and assistance in conducting legal due diligence down to the merger filings with the relevant authorities and the implementation of pre-closing restructuring.[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When parties have opposing opinions concerning a contract and where they are unable to agree how it is to be applied, the dispute arising will need to be settled by the court.<\/p>\n","protected":false},"author":1,"featured_media":3844,"parent":10,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v17.8 (Yoast SEO v17.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Mergers and Acquisitions in Dubai UAE Process and Legal Service<\/title>\n<meta name=\"description\" content=\"Mergers and Acquisitions Law and Regulations in Dubai UAE for Company\/Businesses. Intellectual property, human resource, financial and legal issues.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/alriyamiadvocates.com\/practice-areas\/mergers-acquisitions-dubai-uae\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MERGERS AND ACQUISITIONS\" \/>\n<meta property=\"og:description\" content=\"When parties have opposing opinions concerning a contract and where they are unable to agree how it is to be applied, the dispute arising will need to be settled by the court.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/alriyamiadvocates.com\/practice-areas\/mergers-acquisitions-dubai-uae\/\" \/>\n<meta property=\"og:site_name\" content=\"Reliance Associates\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/alreyamiadvocates\" \/>\n<meta property=\"og:image\" content=\"https:\/\/secureservercdn.net\/160.153.138.71\/y67.3c0.myftpupload.com\/wp-content\/uploads\/2020\/07\/mergers-and-aquisitions-in-dubai-uae-e1603001713165.jpg?time=1637230037\" \/>\n\t<meta property=\"og:image:width\" content=\"400\" \/>\n\t<meta property=\"og:image:height\" content=\"288\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@askAlreyami\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/alriyamiadvocates.com\/#organization\",\"name\":\"Reliance  International Legal Consultants\",\"url\":\"https:\/\/alriyamiadvocates.com\/\",\"sameAs\":[\"https:\/\/www.facebook.com\/alreyamiadvocates\",\"https:\/\/www.instagram.com\/alriyami.advocates\/\",\"https:\/\/www.linkedin.com\/company\/3619627\",\"https:\/\/www.youtube.com\/channel\/UCyiTE7eqbwY9S3VuHW5bOjw\",\"https:\/\/www.pinterest.com\/hassanadvocates\/\",\"https:\/\/twitter.com\/askAlreyami\"],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/alriyamiadvocates.com\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/i0.wp.com\/alriyamiadvocates.com\/wp-content\/uploads\/2018\/10\/Al-Riyami-Logo.jpg?fit=1007%2C276&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/alriyamiadvocates.com\/wp-content\/uploads\/2018\/10\/Al-Riyami-Logo.jpg?fit=1007%2C276&ssl=1\",\"width\":1007,\"height\":276,\"caption\":\"Reliance  International Legal Consultants\"},\"image\":{\"@id\":\"https:\/\/alriyamiadvocates.com\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/alriyamiadvocates.com\/#website\",\"url\":\"https:\/\/alriyamiadvocates.com\/\",\"name\":\"Reliance Associates\",\"description\":\"We have the Best Experienced Lawyers in Dubai UAE\",\"publisher\":{\"@id\":\"https:\/\/alriyamiadvocates.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/alriyamiadvocates.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/alriyamiadvocates.com\/practice-areas\/mergers-acquisitions-dubai-uae\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/alriyamiadvocates.com\/wp-content\/uploads\/2020\/07\/mergers-and-aquisitions-in-dubai-uae-e1603001713165.jpg\",\"contentUrl\":\"https:\/\/alriyamiadvocates.com\/wp-content\/uploads\/2020\/07\/mergers-and-aquisitions-in-dubai-uae-e1603001713165.jpg\",\"width\":400,\"height\":288,\"caption\":\"mergers and aquisitions in dubai uae\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/alriyamiadvocates.com\/practice-areas\/mergers-acquisitions-dubai-uae\/#webpage\",\"url\":\"https:\/\/alriyamiadvocates.com\/practice-areas\/mergers-acquisitions-dubai-uae\/\",\"name\":\"Mergers and Acquisitions in Dubai UAE Process and Legal Service\",\"isPartOf\":{\"@id\":\"https:\/\/alriyamiadvocates.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/alriyamiadvocates.com\/practice-areas\/mergers-acquisitions-dubai-uae\/#primaryimage\"},\"datePublished\":\"2020-07-27T08:07:27+00:00\",\"dateModified\":\"2020-07-27T08:07:27+00:00\",\"description\":\"Mergers and Acquisitions Law and Regulations in Dubai UAE for Company\/Businesses. 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