I. Introduction

The New Law will become effective on 1 July 2015 (“Effective Date”) and will replace UAE Federal Law No. 8 of 1984 (“Existing Law”).  The New Law's provisions as regards company structure and governance have been well documented. Developments relevant to financing transactions have received less attention but include provisions on: (i) corporate power and authority; (ii) regulation of Islamic banks; (iii) lending to board members; (iv) requirements in respect of directors interested in transactions; (v) financial assistance; (vi) pledges of shares in limited liability companies (“LLCs”); (vii) related party transactions; and (viii) application of provisions relating to public joint stock companies (“PJSCs”) to LLCs.  This article covers some of the key developments relevant to financing transactions.

II. Power & Authority