AN ANALYTICAL STUDY OF THE CRIMINAL LIABILITY FOR FOUNDERS OF JOINT-STOCK COMPANIES

Article

Dec 29, 2021

DOI:

Published in: Corporate Governance and Organizational Behavior ReviewOpen AccessVolume 5, Issue 2 Special Issue, Pages 203 - 2112021 Document type Article• Hybrid Gold Open Access Source type Journal ISSN 25211870 DOI 10.22495/cgobrv5i2sip8 View more AN ANALYTICAL STU

Abstract

Due to the importance of commercial enterprises to economic development, the UAE legislature has sought to carefully regulate them, including providing guarantees to prevent manipulation by founders during the incorporation period. This article focuses on the criminal liability of founders of joint-stock companies in Emirati law and clarifies the actions that result in criminal liability for founders of joint-stock companies. The article approaches the topic by first defining a founder and the qualifications they must possess. Then, the article discusses the crimes and the rulings related to the crimes committed during the incorporation of a joint-stock company (Kamensky, Dudorov, Movchan, Vozniuk, & Makarenko, 2020). This is done by analyzing the relevant laws, including the UAE Commercial Enterprise Law (Number 2 of 2015). The article concludes that the Emirati legislature has defined the purpose of founders and provided the conditions that a person must fulfill to sign the initial contract to incorporate a company as a founder. Moreover, this study showed that the Emirati legislature has leaned towards issuing severe punishments for those who commit these crimes.