Company Formation Dubai



Company Management in Dubai

Updated on Wednesday 06th July 2016

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Company-management-in-DubaiForeign citizens opening companies in Dubai are subject to several requirements, among which subscribing a sufficient capital to keep the business running and to ensure the company is properly managed. In order to achieve the latter, the shareholders must appoint one or more directors who will form the management board of the company.

Company management in Dubai also falls under the governance of several laws, among which the Company Act and the Corporate Governance Rules are the most relevant.

The management of companies in Dubai

One of the most employed types of structures in Dubai is the limited liability company. This type of company must have at least one manager and a board of directors and together they will form the management of the company. Company managers are appointed during a general assembly of the shareholders. Also, limited liability companies with more than 7 shareholders must also appoint a supervisory board, according to the Commercial Law.

Under the laws mentioned above, directors and managers of Dubai companies have certain rights, but also responsibilities towards the shareholders, the company, the employees and third parties they come in contact with.

Our company formation agents in Dubai can offer more information about the appointment of company managers in the UAE.

Powers and liabilities of company managers in Dubai

A company’s management in Dubai implies carrying out specific tasks on a daily basis, which combined must ensure the long-term development of the company. Managers or directors have the power of making certain decisions and abide by the shareholders’ requirements. They must also make sure the company’s activities respect the provisions of the Company Law. Additionally, the directors or managers are the ones filing all required documents with the Dubai Trade Register in a timely manner.

A company’s management can be held liable for the following actions:

  • -          abuse of power;
  • -          fraud;
  • -          infringement of the company’s statutory documents’ provisions.

In the case of joint stock companies, the company management can be held liable for other offences also.

For complete information about the company management in the UAE, do not hesitate to contact our company registration representatives in Dubai.


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