Date of Award
Master of Science (MS)
د. أحمد الزعابي
د. عماد دحيات
د. مراد المواجدة
There have been radical changes in the concept of the company in general and the limited liability company in particular. That is mainly after the UAE Federal legislator joined the group of legislators who authorized the direct and indirect establishment of a One Man Company through the Commercial Companies Law (Federal Law No. 2 of 2015), which lead the UAE federal legislator to amend the legal texts of companies in general and the limited liability company in particular to suit the new situation.
The One Man Company is based on the idea that a person will voluntarily establish a company by deducting a certain amount from his financial liability and allocating it to a specific project that could acquire a moral entity. That is subject to his liability being limited to the amount allocated for that project without extending his liability to other elements against the debts incurred and arising from that company.
In this memo, we have concluded that the UAE Federal Legislator has created a One Man Limited Liability Company without the members of an independent legal organization that regulates the company in terms of incorporation, capital and supervision, where he instead only referred it to the limited liability company which, undoubtedly is similar in terms of the limitation of liability, however, differs in its individual nature, creating a great legislative gap and lack.
Moreover, this memo recommends that the UAE Federal Legislator should specify the number of companies that a natural person and a One Man Company may own in the form of a single limited liability company to prevent fraud and take such companies as a pretext to weaken the general guarantee of creditors by dividing the financial liability of several individuals. Whereas, the creation of multiple creditors could be considered as one of the most important legal obstacles to the One Man Company per person in the laws which takes financial sufficiency as its main principle.
محمد النهدي, سامية بخيت, "اشكاليات التنظيم القانوني للضمانات العامة لدائني شركة الشخص الواحد ذات المسؤولية المحدودة في قانون الشركات التجارية الاتحادي رقم (2) لسنة" (2018). Private Law Theses. 6.