"Abu Dhabi for family businesses"Forming family business dispute resolution committees strengthens the legislative framework and supports business continuity

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ABU DHABI, 27 March / WAM / The Abu Dhabi Family Business Council, affiliated with the Abu Dhabi Chamber of Commerce and Industry, confirmed that the decision of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President of the UAE, Deputy Prime Minister and Head of the Presidential Court, regarding the formation of family business dispute resolution committees in the emirate, strengthens the legislative framework that supports the stability of family businesses and the continuity of their business.

The Council added, in a press statement today, that the formation of these committees comes at an important time, in light of the growing role that family businesses play in supporting the national economy, as it contributes to providing effective and rapid mechanisms for resolving disputes, ensuring business continuity, preserving the cohesion and stability of family businesses, and enhancing investor confidence and the business environment in the emirate.

His Excellency Khalid Abdul Karim Al Fahim, Chairman of the Abu Dhabi Family Business Council, said that the decision of His Highness Sheikh Mansour bin Zayed Al Nahyan embodies a forward-looking leadership vision that strengthens Abu Dhabi’s position as a leading economic center, and confirms the keenness of the wise leadership to establish an integrated legislative and judicial system that supports the sustainability of family businesses. These committees would contribute to providing a more stable and transparent environment, and enabling family businesses to address challenges efficiently, ensuring Business continuity and growth across generations.

He added that family businesses represent a fundamental pillar of the economy of the Emirate of Abu Dhabi, and this decision enhances their ability to continue their vital role in supporting economic development, by providing specialized mechanisms for resolving disputes in a way that preserves business stability and limits the impact of disputes on their continuity.

The Council stressed that this step contributes to enhancing the attractiveness of the business environment in Abu Dhabi, and consolidating the principles of governance and sustainability, in line with the emirate’s economic trends towards building a diversified and competitive economy.

The committees are responsible for examining disputes related to the contracts of incorporation, management, or ownership of family companies whose headquarters are located in the Emirate of Abu Dhabi, whether between partners, family members, or with third parties. They are also specialized in adjudicating grievances against the decisions of family councils in accordance with the approved legal frameworks.

The decision grants the committees broad powers to take preventive and urgent measures to ensure the continuity of the companies’ business and that their reputation or financial position is not affected, in addition to the possibility of seeking assistance from specialized technical and legal expertise depending on the nature of the dispute.

The decision also stipulates that priority be given to amicable settlement through dispute settlement centers, and if this is not possible, the committees will decide disputes with binding decisions that can be appealed, while emphasizing the confidentiality of information related to the cases.

The Abu Dhabi Family Business Council affirmed its commitment to continuing its role in supporting and empowering family businesses, thus enhancing their contribution to the economic growth of the Emirate of Abu Dhabi and consolidating its position as a global business center.