ME-ALLIANCE LEGAL UPDATE
The Regulations and Conditions for Holding the General Assembly of Limited Liability Companies (LLCs) Through Modern Technology Means
The Ministry of Economy issued Ministerial Decision No. (23) of 2024 concerning the regulations and conditions for holding the General Assembly of Limited Liability Companies (LLCs) through modern technology means. The decision aims to regulate the use of technology to conduct General Assembly meetings of LLCs, ensuring effective shareholder participation, governance compliance, transparency, and secure documentation of proceedings.
Scope of Application:
-The decision applies to Limited Liability Companies established in the UAE that wish to hold their General Assembly meetings through modern technological means.
-It establishes a clear legal framework for conducting such meetings in line with the provisions of Federal Decree-Law No. (32) of 2021 on Commercial Companies.
Regulations and Conditions:
The decision outlines several requirements for holding General Assembly meetings of LLCs through technological means, including:
• Providing a secure technical system to verify the identity of partners before joining the meeting.
• Recording the meeting proceedings, archiving minutes, and making results accessible to all partners.
• Verifying the legal quorum for attendance before the meeting begins.
• Clearly presenting the meeting agenda to all partners.
• Recording and documenting discussions and remarks in the meeting minutes.
• In case of technical interruptions, the meeting must resume using the same platform once service is restored, ensuring quorum verification and continuation of voting.
Practical Impact:
• Enhances the role of technology in enabling LLCs to hold meetings with greater flexibility.
• Improves governance efficiency and facilitates participation by partners regardless of location.
• Supports digital transformation in the UAE’s business environment and ensures compliance with modern regulations.
To view the legislation, click on here:
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