The Federal National Council (FNC) reviewing draft commercial law that would allow 100 per cent foreign ownership of some companies

Abu Dhabi: The Federal National Council (FNC) will be reviewing on Tuesday a draft commercial companies law that would allow full foreign ownership of certain firms “but within specific conditions,” said Ali Eisa Al Nuaimi, a representative from Ajman.

“Members of the House will debate in a two-day session a draft commercial law that will allow 100 per cent foreign ownership of some companies, within specific conditions,” said Al Nuaimi, a representative from Ajman.

The draft legislation would authorise the Cabinet, on advice from the Minister of Economy, to name companies which would be fully owned by foreigners.

Under UAE law only citizens are allowed full ownership of companies operating outside of free zones. The law currently allows foreigners to own a maximum of 49 per cent of companies registered outside of free zones — and requires foreigners to have an Emirati as a partner or sponsor to conduct business.

Al Nuaimi told Gulf News eligible companies would “have to be within the industries that have certain priorities within the economy, such as aerospace, communications and petrochemicals.”

“These companies should bring added value in terms of providing their expertise to support the UAE’s continued development and growth. They should also hire large numbers of Emiratis, with each offering 100 jobs or more to citizens,” argued Al Nuaimi, also rapporteur of the parliamentary financial committee.

He added the legislation would lay down a framework for the governance of public companies, ensuring transparency and disclosure of financial data as well as the efficiency and integrity of the board of directors.

“The law is meant to improve the business landscape in the UAE and make it easier to do business and potentially boost the economy. It will enforce strict corporate governance standards in accordance with international practices,” Al Nuaimi said.

The draft law, he added, would also open up the jurisdiction for free zone companies wishing to operate in the UAE outside of the free zones.

Al Nuaimi said the committee would suggest making governance rules applicable to all members and chairs of the board, removing particular partnership companies from the draft law and making it obligatory for company founders to return share cash plus interest in the event public joint stock companies are not set up.

The committee also stressed that foreigners may not be allowed to act as agents of foreign companies and that labour shares can only be accepted from acting partners.

Under the draft law, which comprises 12 chapters and 383 articles, the founders of a Public Joint Stock Company (PJSC) are obliged to subscribe to no less than 30 per cent of the issued capital of a company.

The draft law will not apply to companies excluded by a Cabinet resolution. These include companies wholly owned by federal or local authorities, companies in which the federal or local authority, or any establishment, authority, department or company controlled or held by any of the foregoing (directly or indirectly) holds at least a 25 per cent shareholding and which operates in oil exploration, drilling, refining, manufacturing, marketing or operating in the energy sector in power generation, gas production, or water desalination and distribution.

Members of the House are also set to press for the boosting of domestic tourism and the setting up of a federal drugs watchdog.

Sri Lanka to raise minimum age for hiring overseas maids to 25

Foreign Employment and Welfare Minister Dilan Perera said that the minimum age limit of female migrant domestic aids would be raised from 21 to 25 besides bringing new conditions to the terms of their employment contracts in order to strengthen their rights and ensure safety.

He made this announcement during a memorial service held at a mosque in Colombo for Rizana Nafeek, a Sri Lankan maid who was executed in Saudi Arabia after being convicted for the death of a four month old child in her care.
Earlier the minimum age limit for domestic workers was raised from 18 to 21, he said explaining that no sooner he took over the ministry, the Government’s policy was to reduce migration of house maids for jobs in Middle East, Daily News reported.
Ensuring the safety of migrant domestic workers to Middle East, new terms will be introduced to employment contracts in line with the laws of labor of Sri Lanka as well as receiving countries.

He urged the elders to act responsibly and stop sending their underage children for employment abroad by resorting to falsifying documents and other illegal means.In a recent interview to Daily News, Chairman of Sri Lanka Bureau of Foreign Employment Amal Senalankadikara recalled that his bureau aims to reduce female migrants for overseas domestic aides’ jobs by 80 to 90 percent by 2020.

He had said “We do not approve female going for overseas work as domestic aides. However, we cannot put a full stop to it immediately. Therefore, we have launched a number of programs to upgrade their skills and find gainful employment in specialised vocations”.

Companies in UAE cannot retain Emirates ID cards of employees- Emirates Identity Authority

Emirates Identity Authority (Eida) has clarified that companies cannot withhold ID Cards of their employees.
According to a report in ‘Al Khaleej’, companies are not authorised to retain ID Cards of their staff. However, they can record information of the individuals from their cards.

Eida further clarified that firms can hold ID Cards of staff members only if the court has ruled so.Similarly, the act of handing over one’s ID Card to another is illegal, stressed Eida, except in cases when the courts order for a handover.

Meanwhile, the Authority has urged all UAE residents to carry their ID Cards with them at all times. As per law, residents are required to submit ID Cards whenever asked, the report added.

The ID Card contains a unified code number and readable data stored on an electronic chip, which is in accordance with the Regulations of the Legislative Decree of the establishment of Eida No(2) of 2004.The card also contains private details of the holder, which act as security features.

Expatriates in the UAE will not be exempt from criminal charges for bouncing cheques

Expatriates in the UAE will not be exempt from criminal charges for bouncing cheques, authorities said, clarifying media reports that foreign nationals who write bad cheques will no longer be punished.

The Higher Committee for Debt Settlement Fund for Nationals said it will only settle bad debts for Emirati citizens and not foreigners living in the Gulf state.

“The mechanisms set by the fund will apply only to UAE citizens, and not others, and this includes the President’s directives to decriminalise [bounced] security cheques presented by UAE citizens to banks and financial firms,” a statement on state news agency WAM said.

“The prosecution shall suspend all criminal cases and the courts shall dismiss all cases in connection with security cheques presented by Emiratis,” it added.

The statement comes days after local media printed contradictory reports on whether the UAE was ending prison terms for expatriates that write bad cheques.
Arabic daily Al Ittihad on January 1 said bouncing a cheque would no longer be a criminal offence for expatriates, quoting Ali Khalfan Al Dhaheri, head of the legal affairs department at the Ministry of Presidential Affairs,
“In line with the directives of Sheikh Khalifa... and in the spirit of fairness and equality, the courts have stopped as of last month accepting collateral cheques presented as a criminal tool against expatriate debt defaulters,” he told the newspaper.
“Federal public prosecutions in the country have, indeed, released expatriate detainees as has been the case of their Emirati counterparts who were freed last October,” added Judge Jassem Saif Buossaiba, head of the judicial inspection department at the Justice Ministry.
Gulf News however denied the report. “There is no relaxation or debt waiver for expatriates,” deputy minister of Presidential Affairs Ahmad Jumaa Al Zaabi told the newspaper.
Cheques are used in the UAE to underwrite credit cards, loans and guarantee future payments and bouncing cheques is a criminal offence and not a civil one.
Authorities in October relaxed the penalties for Emiratis who write bad cheques and in November freed around 290 UAE nationals who were in prison for bouncing cheques.
UAE President Sheikh Khalifa Bin Zayed Al Nahyan in May allocated around AED5m to settle defaulted loans for each indebted Emirati. In August, the Central Bank ordered banks to extend maturities on personal loans held by Emiratis by more than four years.

No criminal case for bounced security cheques in UAE courts -Ruling covers expats and Emiratis

UAE courts have stopped accepting cheques submitted by banks as a criminal tool against debt defaulters in line with new instructions by President His Highness Sheikh Khalifa bin Zayed Al Nahyan, the semi-official daily Alittihad reported on Monday.

The instructions had first benefited Emirati defaulters before courts were told last month to apply the same rule on expatriate debtors, the paper said.

Quoting Jassim Bu Aseeba, Director of the Judicial Inspection Division at the Ministry of Justice, the Arabic language paper said banks have been told that federal courts would no longer accept cheques presented to them by expatriates against a loan.

“All federal courts in the UAE have started to enforce the presidential instructions to stop accepting cheques presented by banks as criminal tools against expatriates as is the case with Emirati defaulters,” Bu Aseeba said.

“For this reason, the public prosecutor has released all those jailed because of those cheques. Many Emiratis were already released in October.”

The paper quoted another official as saying federal courts have stopped accepting all cheques presented to them by banks and all other financial firms.

“These cheques are no longer sufficient to put a defaulter in prison. They are not a criminal tool any more,” said Ali Khalfan Al Dahiri, director of the legal affairs department at the Ministry of Presidential Affairs.

“The decision is in line with the President’s directives to achieve justice for all residents including Emiratis and expatriates. The decision was enforced last month and all federal courts now enforce the same rule on both Emiratis and expatriates. There is no discrimination in the enforcement of these rules,” he added.

The paper also quoted banking officials as confirming cheques are no longer considered as a criminal tool but that they can be used by banks to prove they are owed money by debtors.

“Banks are still presenting cheques given to them by debtors only as documents proving their rights, including the loan and interest,” one source said. “But these cheques are no longer enough to arrest defaulters and convict them.”

Legal adviser Dr Mustafa El-Sherbini said that this does not mean the rights of the creditor are compromised, but it entitles the creditor to go to the civil court to claim dues.

Banking sources told the paper that banks have also stopped using security cheques as a criminal tool, but continued to request they be submitted as part of documentation for loans.

The report quoted sources as saying that this ruling only covers security cheques and that cheques submitted towards monthly, quarterly and other fixed-term payments can be used to file a criminal case if they are not honoured.