Precautionary attachment on the shares under the Emirati Law (A Study in the Civil Procedures and Company Laws)

Authors

Moustafa kandeel, Tariq A. Kameel, Amin Dawwas

 

Abstract

Distinguishing between the proceedings of the confinement on the nominal shares and bearer shares that is stated in the federal civil proceedings law number 11 of 1992 is useless. This is because of the issuance of the new federal commercial companies law number 2 of 2015 that includes nominative shares as the only shares to be confined according to the proceedings that are held for a particular confinement of the debtor's property with others (protective confinement). This kind of confinement supposes the existence of three parties: the first party is the distrainer creditor, the second party is the execution debtor shareholder, and the third party is the garnishee that is the company that exports the shares and the stock market where the shares are circulated. The nominative shares' confinement proceedings start by an announcement for the company that exports the shares and the stock market where the shares are circulated, then the confinement is announced for the execution debtor shareholder. In the confinement notification, the garnishee is asked for presenting a report of his debt of the debtor. If he does not do that, the garnishee shall be a subject for the legal penalty which imposes him to pay the debt. Signing the confinement leads the shares ad their attachments (the profits) to be under the control of a specific legal system according to which the confined shares and their profits' property stays for the shareholder. However, the shareholder has a constrained authority on the confined shares and the profits.

DOI: 10.51958/aaujbl2017v1i2p2