Abu Dhabi-Mubasher: The federal bankruptcy law works on identifying different ways to avoid bankruptcy cases and liquidation of the debtors’ funds, according to a statement.
Punishment of bypassing the law will include five-year prison sentence as well as fines up to a million dirhams.
On Sunday, the UAE Cabinet adopted the final draft of the federal law on bankruptcy in UAE.
The law sets up a new regulatory body the “Committee of Financial Restructuring” which will oversee the procedures of financial restructuring outside the scope of the court, appoint experts in the field of financial restructuring and establish an electronic record of individuals issued against them a bankruptcy ruling.
