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29 February 2024

MoE issues guidelines for annual general meetings

By Wam

The Ministry of Economy has issued a circular reminding private shareholding companies when they should hold their annual general meetings.

The ministry underlined the importance of companies observing Article 119 of the Commercial Companies Law, which says annual meetings should be held during the four-month period following the end of the fiscal year. And it said they should also observe Article (124), which says the agendas of such meetings should cover certain issues and points.

Items that should be covered include the board's discussions of the company's activities and financial situation over the year and the auditors' report, and the company's budget and accounts.

Other matters include the election of board members, when necessary, and auditors, and their remuneration. The board's suggestions regarding the distribution of profits should be considered, as should the date and method of their distribution.

And the ministry said invitations to general meetings should not be published in local newspapers without its approval.

The ministry said shareholders should be invited to the meeting via advertisements in two Arabic language dailies 21 days prior to the meeting's date. The invitation should be included in the agenda.

The meeting is considered valid only if those who attended the meeting hold a minimum of 50 per cent of the capital in the firm.

Should this criteria not be met, the general assembly should call for another meeting that should be held within 30 days from the date of the first one.

Whereas, for non-ordinary general assembly meeting the attendance should be represent a minimum of 75 per cent of the capital, the ministry said in its circular.

Insurance resolution

Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the Federal Insurance Authority, has issued a resolution bringing the executive regulations of the federal insurance law no 6 of 2007 into force.

Fatima Mohammed Al Awadi, Deputy Director General of the Authority, said issuance of the regulations is part of the Authority's strategy to review systems, directives and resolutions dealing with supervision of insurance companies and professions.

"The regulations will be applied to all kinds of national and foreign insurance firms licensed to operate in the country, insurance brokers, insurance agents, insurance consultants operating in the UAE, along with other experts in the insurance industry, such as loss adjusters and actuaries, except firms operating in the free zones," she said.


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