The document outlines new corporate governance rules issued by the United Arab Emirates Ministry of Economy that listed companies and their board members must comply with by April 2010. The Emirates Securities and Commodities Authority is responsible for overseeing compliance. The rules do not apply to certain government or financial institutions. They require more independent and non-executive board members and committees to increase oversight of management. Non-compliance can result in penalties like warnings, suspension of listing, or delisting.

1. Fichte & Co- Corporate Governance
Ministerial Resolution No. 518 of 29th October
2009, concerning Governance Rules and Corporate
Discipline Standards, issued by the United Arab
Emirates Ministry of Economy, requires companies
and institutions that have securities listed on any
securities market in the UAE and members of their
boards of directors to comply with no later than 30
April 2010. The Code provides for enhanced and more
comprehensive corporate governance rules and
discipline standards for listed companies.

2. The Emirates Securities and Commodities Authority
(“ESCA”) is the authority in charge of
supervising, controlling and verifying the compliance
of listed companies with the Code.
Concerning the scope of application, the Code does
not apply to the following:
 Companies and institutions that are wholly owned by
the Federal Government or a local government;
 Banks, finance companies, financial investment
companies, money exchange companies, monetary
brokerage companies that are under the supervision of
the Central Bank; and

3.  The foreign companies that are listed in any of
financial markets.
The Code provides for an enhanced and more
comprehensive corporate governance rules and
discipline standards for listed companies. The Code
places emphasis on oversight of the management and
functions of the Board by appointing more
independent members and non-executive
directors, forming committees and having external
auditor and an internal control system.

4. In the event of non-compliance with The Code, the
ESCA may impose penalties on breach and non-
compliance of any of its provision including
warning, suspension of company's security listing and
delisting.
If you need any additional information or further
enquiries about Corporate Governance Rules, Fichte &
Co Legal Consultancy would be pleased to provide you
with best corporate governance standards adapted to
your specific requirements.
Please contact our corporate lawyer in Dubai via email
at mohamed.bouadar@fichtelegal.com

5. Contact us:
Fichte & Co
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Phone: +971 4 43 57 577
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