Ministerial Resolution No. (272) of 2016 sets out which provisions applicable to joint stock companies also apply to limited liability companies.

Introduction -

Since UAE Federal Law No. (2) of 2015 concerning Commercial Companies (CCL) came into force on 1 July 2015, Article 104 of the CCL has been the subject of much debate and commentary. Article 104 states that, unless the CCL provides otherwise, the provisions concerning joint stock companies (JSCs) apply equally to limited liability companies (LLCs). This has created significant uncertainty surrounding exactly which of those provisions applicable to JSCs also apply to LLCs. In particular, concerns have been raised over the application of the prohibition of financial assistance to LLCs.