The Executive Council of Sharjah recently made a decision to regulate family businesses within the emirate, requiring them to have an incorporation contract in line with the Companies Law. The move aims to establish mechanisms for resolving disputes related to family businesses, create a legal framework for their organization and governance, and facilitate their transition across generations. The decision also seeks to ensure the sustainability of family businesses and bolster their contributions to the economy.
The regulation includes provisions regarding ownership within family businesses, the disposal of shares by partners, share classifications, and family endowment businesses. It also covers aspects such as the family charter, dispute resolution, processes for dissolution and liquidation of the company, as well as executive decisions concerning enforcement and effectiveness. The decision applies to family businesses formed within the emirate, as well as existing companies owned by single-family members and family enterprises in free zones, as long as they comply with relevant regulations.
The Executive Council’s meeting, chaired by Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, also discussed general policies guiding government operations in the emirate and strategies for their enhancement. The council examined proposals and plans aimed at supporting urban development in residential areas across Sharjah to foster social cohesion and reinforce family stability for citizens. Additionally, a presentation on the academic progress of government employees was reviewed, emphasizing Sharjah Ruler’s directives to encourage citizens to study and benefit from available scholarships.
The decision to regulate family businesses within Sharjah was announced in a meeting of the Executive Council, attended by prominent figures such as Sheikh Abdullah bin Salem bin Sultan Al Qasimi and Sheikh Sultan bin Ahmed bin Sultan Al Qasimi. The council’s discussions also focused on enhancing government operations in the emirate and supporting urban development initiatives to promote social cohesion and family stability. The regulation aims to provide a legal framework for the organization and governance of family businesses, ensuring their sustainability and enhancing their contributions to Sharjah’s economy.
In addition to regulating ownership, share disposal, and dispute resolution within family businesses, the decision also covers aspects like family charters, dissolution processes, and executive decisions. It applies to family businesses in various forms, including those formed within the emirate, existing companies held by single-family members, and family enterprises in free zones. The council’s meeting highlighted strategies for enhancing government operations in Sharjah and supporting urban development initiatives aimed at fostering social cohesion and family stability among citizens.
The Sharjah Executive Council’s decision to regulate family businesses is part of the emirate’s efforts to establish mechanisms for resolving disputes and ensuring the sustainability of these enterprises. The decision covers various aspects of family business governance, including ownership, share disposal, dispute resolution, and dissolution processes. It aims to provide a legal framework for family businesses across Sharjah, enhancing their contributions to the economy and facilitating their transition across generations. The council’s meeting also focused on strategies for enhancing government operations and supporting urban development initiatives in residential areas to promote social cohesion and family stability for citizens.
