Newsletter – April 2025

  • Recent Ruling by the Federal Supreme Court on the Conditions for Extradition.

In a significant development, the Federal Supreme Court has issued a ruling concerning the conditions for extraditing individuals to foreign nations, clarifying the responsibilities of extradition courts in the process. The court emphasized that it evaluates extradition requests based solely on the existence of fundamental formal and substantive conditions stipulated in the agreements between the United Arab Emirates (UAE) and the requesting state, as well as relevant UAE laws governing extradition matters.

The court’s ruling indicates that it is not obliged to investigate the existence of crime elements or provide evidence supporting the allegations for which extradition is sought. Instead, its mandate is strictly confined to assessing whether the formal conditions for extradition are satisfied. This delineation of the court’s role underscores its limited jurisdiction, focusing primarily on the legal stipulations provided under federal law regarding international judicial cooperation in criminal matters and the principle of reciprocity between the UAE and the requesting country.

Crucially, the court is not authorized to delve into the specifics of how the judgment was reached, the procedural rules applied, or the validity of the accusations made against the individual in question. This separation of duties ensures that the extradition process remains consistent with international legal standards while safeguarding individual rights.

In conclusion, the recent ruling by the Federal Supreme Court sheds light on the procedural framework governing extradition in the UAE. It reinforces the importance of following established legal agreements. It highlights the court’s role in safeguarding the integrity of the extradition process while maintaining a clear boundary on its judicial functions. Such clarity is essential for fostering confidence in the judicial system and international cooperation in criminal matters.

  • Recent Ruling by the Federal Supreme Court on Liquidation Procedures for Single-Person Limited Liability Companies.

The Federal Supreme Court has recently ruled regarding the procedures for dissolving and liquidating a single-person limited liability company in the United Arab Emirates (UAE). This ruling clarifies the legal framework governing such companies and emphasizes the appropriate pathways for dissolution.

The court determined that a lawsuit filed by the sole owner to dissolve the single-person limited liability company is inadmissible. This decision aligns with the provisions of the UAE Companies Law, which outlines specific procedures for the dissolution and liquidation of limited liability companies, including those with a single owner.

According to the law, the primary mechanism for initiating the liquidation of a single-person limited liability company is through a resolution passed by the company’s general assembly. In this case, the sole owner functions as the sole member of the general assembly and holds complete ownership of the company’s shares. Consequently, the sole owner possesses the authority to decide on the dissolution and liquidation of the company without the need to resort to the courts.

The court’s ruling underscores the principle that the owner of a single-person limited liability company doesn’t have to seek judicial intervention for the dissolution process. Instead, the owner should exercise their rights as the sole member and directly decide on the company’s liquidation. By doing so, the owner maintains control over their business affairs and adheres to the established legal protocols.

In summary, the recent judgment by the Federal Supreme Court clarifies the legal procedures for dissolving single-person limited liability companies within the UAE. It reinforces the understanding that the dissolution should be managed internally through a resolution by the owner, emphasizing a straightforward and efficient approach to corporate governance. This ruling not only streamlines the dissolution process but also enhances business owners’ confidence in navigating the legal landscape effectively.

  • Recent Ruling by the Dubai Court of Cassation on the Role of the Insolvency Trustee.

The Dubai Court of Cassation has released a significant ruling concerning the Role and responsibilities of the insolvency trustee. This ruling clarifies the trustee’s duties in scrutinizing creditors’ claims and assessing the debtor’s financial standing, culminating in a comprehensive report to the court that includes all relevant details.

Previously, if creditors failed to submit any claims to the insolvency trustee, the court would dismiss the insolvency application. This procedural shortcoming was addressed by the recent ruling, which establishes that as long as the applicant for insolvency has provided a detailed statement regarding the total debts, the enforcement files, and the addresses of the creditors—properly notifying them—the trustee should not be held accountable for the absence of creditors and their failure to submit claims.

The court emphasized that if the insolvency application includes a complete and accurate disclosure of the debtor’s obligations, it should not be deemed invalid merely due to creditors’ non-participation. The previous practice of rejecting insolvency petitions on these grounds was found to be flawed and has now been overturned by the Dubai Court of Cassation.

In conclusion, the recent judgment by the Dubai Court of Cassation significantly impacts the Role of the insolvency trustee, ensuring that creditors’ non-action does not obstruct the flow of insolvency proceedings. This development represents a progressive step toward a more balanced approach to insolvency and reinforces the importance of an effective legal framework for managing financial distress in the business landscape.

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