Cabinet Resolution No. (4) of 2018 Forming the Financial Restructuring Committee. (economy and business law)

Article (1)  
Definitions  
For applying the provisions of  this Resolution, the following words and expressions 
shall have the meaning assigned thereto  respectively , unless the context requires 
otherwise:  
State  : The United Arab Emirates.  
Ministry  : The Ministry of Finance.  
Minister  : The Minister of Finance.  
Emirate  : Any of the member emirates of the Federation.  
Committee  : The Financial Restructuring Committee formed 
according to the provisions of this Resolution.  Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  2 
 Competent Supervisory 
Body  : The local or federal government body nominated by 
a resolution to be issued by the Cabinet.  
Competent Authority  : The local government body concerned.  
Financial Institution  : Banks and other institutions licensed by the 
competent supervisory body for pro viding the 
financial services according to the legislation in 
force in the State.  
Debtor  : The applicant of Financial Restructuring according 
to the provisions of this Resolution.  
Bankruptcy Law  : Federal Decree -Law No. (9) of 2016 Concerning 
Bankruptcy.

Article (2)  
Formation of the Financial Restructuring Committee  
1. The Committee shall be composed of nine (9) members under chairmanship of the 
Deputy Minister and with the membership of the representatives of the  following 
entities:  
a. The Ministry of Finance;  
b. The Ministry of Economic;  
c. The Ministry of Justice;  
d. The Ce ntral Bank;  
e. The Securities and Commodities Authority;  
f. The Government of Abu Dhabi  
g. The Government of  Dubai  
h. The Government of Sharjah  
2. Each entity r eferred to in Item (1) of this A rticle shall nominate its experienced and 
competent representative for the membership of the Committee . The Minister 
shall issue a resolution for approving their membership  in the Committee . Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  3 
 3. The Committee shall select  from a mong its members, a Vice -Chairman at its first 
meeting  to act  on behalf of the chairman in his absence or in the event of vacancy 
in chairmanship for any  reason  what soever . 
4. The term of company's membership shall be (3) three years and may be renewed 
for other similar terms  according to the procedures r eferred to in Item (2) of this 
Article.  
5. If the term of the  membership expires and no new members have  been appointed,  
in such case,  the members whose memberships expired shall continue to carry out 
their tasks until the Committee is reformed . 
6. If a vacancy occurs in the membership of the Committee for any reason, it shall not 
affect the continuity of the Committee 's work, provided that the  members thereof 
shall be at least (7) seven members. The appointment of the member shall be made 
by replacing  the member whose pos ition became vacant  for the remain ing period 
of its membership  according to the provisions of Item (2) of th is Article.

Article (3)  
Secretariat of the Committee  
1. The Committee shall have a Secretariat , whose administrative, financial,  and 
technical affairs shall be supervised by  The Ministry.  
2. The  Minister shall issue the resolutions required for the appointment of one of the  
Ministry 's employee  to carry out the Committee Secretary's  functions , and the 
appointment of  one or more employee (s) to assist the Committee Secretary in his 
functions , and their competences and functions shall be determined in the 
Minister's resolution.  
3. The Ministry shall open one or more bank account (s) in which  the fees of the 
Financial Restructuring  experts  shall be deposited . Such account shall be subject 
to the supervision of the Chairman of the Committee or his delegate in this regard.  
 
 
 Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  4

Article (4) 
Committee Meetings  
1. The Committee shall hold its meetings  at least once each  (4) four years  or as 
needed  upon  the call of its Chairman or the Vice -Chairman in the absence thereof , 
and  such call shall be accompanied with the agenda of the meeting.  
2. The quorum for the Committee's meetings shall be constituted by the majority of 
the members, provided that the Chairmen or Vice -Chairman shall be amongst the 
attendees . 
3. Each member shall have one vote , and t he decisions of the Committee shall be  
made by a majority vote of the  present members . In the case of  equal  votes, the 
Chairman of the Committee  shall have the casting vote.  
4. The Chairman of the Committee , or Vice -Chairman  in his absence, may call any 
person  who deems appro priate  to attend its meeting and participate in its 
discussions,  but shall not have the right to  vote.  
5. The deliberations and decisions of the Committee shall be recorded in minutes  
signed by the Chairman of the meeting and the members  present . 
6. The decisions of t he Committee may be adopted by circulation in respect to the 
necessary issues determined by the Chairman of the Committee.

Article (5)  
Functions of The Committee  
The Committee shall have  the following functions : 
1. Supervising the management of the procedures of Financial Restructuring  of the 
financial institutions in order to  facilitate reaching  a consensual  agreement 
between the debtor and his creditor  with the support  of one or more  expert(s) 
assigned by the Committee in this regard  according to the requirements and 
procedures set forth in this Resolution . 
2. Approving t he roster of experts  of Financial Restructuring and Bankruptcy  affairs  
for carrying out the work assigned thereto according to the provisions of Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  5 
 Bankruptcy  Law, in coordination with the Ministry of Justice or the Local Authority 
in the Emirates having local jurisdiction.  
3. Approving the requirements and procedures for the registration in the experts ' 
roster  drawn up by the Committee in accordance with the provisions of this 
Resolution.  
4. Setting a schedule  of the fees of the appointed experts  and any expenses borne by 
the latter due to the procedures of the Financial Restructuring . 
5. Establishing and organizing a register of the persons for whom court rulings  are 
issued, whether for imposing  any restrictions  ordered by the court or losing  their 
legal competence pursuant to the provisions of the Bankruptcy Law,  and 
determining i ts form , the data included therein  the persons that have the right to 
access thereto , its requirements  and other relevant judgments.  
6. Submitting periodic reports to the Minister on its work, achievements,  and  
proposals.  
7. Forming one or more sub-committee (s) fro m its members to carry out some duties 
falling within its competence. In such case, the sub -committee  shall submit reports 
on the results of its work to the Committee for approv al. 
8. Organizing and sponsoring the initiatives intended to raise public awareness 
about the Bankruptcy Law and understand ing its objectives.

Article (6)  
Requirements for Financial  Restructuring  
Any financial institution may submit an application for Financial Restructuring to the 
Committee, according to the following requirements:  
1. In case  the financial institution faces  current or projected  financial difficulties . 
2. The financial institution shall not  be in a status of debt payment cessation or in a 
financial state of indebtedness, in accordance with the definition of the cessation 
of payment and the definition of the financial indebtedness set out in the 
Bankruptcy Law for a period exceeding thirty consecutive days.  Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  6 
 3. The financial institution shall not be subject to preventive composition or 
bankruptcy procedures . 
4. The financial institution has not be en subject to Financial Restructuring 
Procedure s during the year preceding the application . 
5. The applicant shall provide t he Committee with the following:  
a. A proof of his authorization to submit  an application for the Financial 
Restructuring of the financial institution.  
b. A statement containing  a brief  description of the financial position of the 
institution , as well as detailed information about its financial rights and 
obligations and its employees.  
c. A copy of the commercial license of the financial institution , its Memorandum 
and Articles of association.  
d. An assessment of  the funding needs to meet the financial institution's 
obligations within the (12) months following the submission of the application 
and the method  of the repayment  of the funding  it may need in cases the 
funding is required . 
6. Any other requirements or documents required by the Committee.

Article (7)  
Deciding on the Application  
1. The Committee shall examine the application for Financial Reconstructing and the 
statements attached thereto. The decision shall be made for approval or rejection 
no later than fifteen (15) working days from the date of its receipt, and its decision 
issued in this regard shall be final, provided that its decision is substantiat ed in case 
the application  is rejected . 
2. The Committee may postpone its deci sion on the application if the applicant is 
required , within a specified time  limit , to provide additional information on the 
financial and economic status of the financial institution . 
3. The Committee shall include in the application approval decision an estimate d 
amount to cover  the costs and expenses of the expert and the method  of payment . Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  7 
 The Committee may decide to pay a proportion of such costs as a down payment 
within a specified period before the commencement of the Financial Restructuring 
Procedures . 
4. The Committee shall notify the applicant , in writing , of its decision no later than  
(5) five working days from the date  of its issuance .

Article (8)  
1. The obligation of the debtor to the request of initiating  the procedures  in 
accordance with the provisions of Part IV of the Bankruptcy Law shall be 
suspended for the duration of the Financial Restructuring if the debtor fails to pay 
its debts in due time for a period exceeding (30) consecutive days as a result of 
the disturba nce of its financial position or in case it becomes in a financial state of 
indebtedness  after the decision of the Committee to accept the application  for the 
Financial Restructuring , in accordan ce with the provisions of this R esolution.  
2. The provisions of Item (1) of this Article and the decision of the Committee to 
approve the application  for Financial Restructuring shall not prevent any of  
debtor's creditors to exercise his right to submit an application to the competent 
court for Financ ial Restructuring and the Bankruptcy of the debtor in accordance 
with the provisions of Part IV of the Bankruptcy Law. The Financial Restructuring 
shall be automatically terminated upon admission of the application by the court.

Article (9)  
Appointment of the Expert  
1. The Committee shall appoint one or more expert(s) from among the experts 
registered with it in accordan ce with the provisions of this R esolution if it 
approves the application  for Financial Restructuring . 
2. The debtor may designate in the application for Financial Restructuring one or 
more expert(s) referred to in Item (1) of this Article, provided that the committee 
shall have the power  to decide  either to approve or reject the appointment of the 
designated  experts.  Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  8 
 3. The expert who is appointed in accordan ce with the provisions of this R esolution 
shall not be a creditor of the debtor , subject to his control or head thereof, has not 
receive d from him during the twenty -four months prior to submitting the 
Financial Restructuring application  a remuneration or bonus related to the nature 
of his profession or his experience, and shall not be related to him up to fourth 
degree . 
4. The Committee shall inform the chosen expert of its decision and the initial fees 
it estimates for the assignment he is required to perform . 
5. The expert shall, in the event of the acceptance of the decision of hi s appointment, 
disclose to the C ommittee , in writing , any potential conflict of interests that may 
affect his performance of the assignment entrusted to him as a result of the 
Financial Restructuring Procedures , and he shall express that he is willing  to take 
up his task , provide the time and effort required  to carry out his role , accept the 
fees determined by the Committee and inform the Committee of any conditions 
relating to his acceptance of the appointment.  
6. In the event that the procedures for appointing the expert are completed in 
accordance with the provisions of this Article, the Committee shall notify all 
parties concerned.  
7. The Committee may, either of its own volition or upon  the request of the debtor , 
appoint an expert from out of  the roster  of experts referred to in I tem (1) of this 
Article , in the absence of the experts specialized  in the required field in the roster  
of experts.  
8. The Committee may replace the expert , upon the request of the expert , of its own 
volition or upon  the request of the debtor , if it finds that it shall be  in the interest 
of the Financial Restructuring Procedures , provided that it shall determine  the 
rights of the expert, and its decision shall be final.  
9. For justified reasons approved by the Committee, the expert may request the 
appointment of one or more specialist expert (s) to deal with specific matters.  
 
 Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  9

Article (10)  
Financial Restructuring Procedures  
1. The Financial Restructuring Procedures shall commenc e from the date on which 
the Committee 's decision  to appoint the expert  is made . 
2. The expert shall inform the C ommittee within (10) working days from the date of 
his appointment of the period in which the Financial Restructuring Procedures  
are expected to be completed.  
3. The Committee shall make  a decision determining  the period of the completion 
of the Financial Restructuring Procedures and may , for justified reasons , extend 
the period on its own or upon the request of the expert.

Article (11)  
The expert appointed in accordance with the provisions of this Resolution shall : 
1. Asse ss the economic and financial  status of the debtor.  
2. Facilitate a consensual agreement between the debtor and its creditors and any 
of its contractors . 
3. Provide the debtor with the proposals in order to continue his business and retain  
his employees . 
4. Submit monthly reports to keep the Committee informed of the progress of 
Financial Restructuring Procedures . 
5. Any other tasks assigned thereto by the Committee.

Article (12)  
Debtor's Right to Manage its Business  
The appointment of an expert in accordance with the provisions of this Resolution 
shall not affect the right of the debtor to manage his own business , and the same shall 
not relieve him from  any legal or contractual obligations arising from the practice of 
his business.  
 Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  10

Article (13)  
Termination  of Financial Restructuring Procedures  
Subject to the provisions of Item (3) of article (10) of this Resolution:  
1. The Financial Restructuring Procedures shall be terminated if an agreement 
regarding Financial Restructuring between the debtor and its creditors is reached . 
2. The Committee may decide to terminate the Financial Restructuring  in any of the 
following cases:  
a. The applicant  non -payment of  the fees and expenses determined by the 
Committee . 
b. If the expert concludes that an agreement cannot be reached between the 
debtor and its creditor . 
c. Upon the request of the debtor, provided that the Committee sh all ensure that 
the reasons for the application  for the Financial Restructuring have ceased to 
exist.  
3. The Committee shall inform the applicant for Financial Restructuring, in writing, of 
any decision regarding the termination of the  Financial Restructuring Procedures.

Article (14)  
Confidentiality of Information  
All information and data related  to the Financial Restructuring Procedures shall be 
considered confidential and shall not be disclosed by the expert or any other person 
to anybody other than  the parties concerned  with such procedures .

Article (15)  
Registration in the Roster of Expert s 
A natural or legal person may apply for registration in the roster  of experts created by 
the Committee in accordanc e with the form prepared by the Committee for this 
purpose. The application shall be deposited with the secretariat of the Committee.  
 Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  11

Article (16)  
The documents supporting  the application shall be attached to the application referred 
to in article (15) of this Resolution in accordance with the requirements set forth in 
the Registration Form in the Experts Roster . The Committee  may verify the 
authenticity of such documents.

Article (17)  
The Secretary of the Committee shall submit  the application for registration  in the 
roster of experts to the Committee  in order to  make a decision  thereon  no later than  
fourteen (14) working days after  verifying that  the application fulfi lls the requirements 
for submission.

Article (18)  
The fees of the registration in the roster of experts referred to in article (15) of this 
Resolution shall be collected in accordance  with Federal Law No. ( 7) of 2012 referred 
to.

Article (19)  
The Committee may set certain procedures or requirement for passing specialized 
courses  in the field of Financial Restructuring and Bankruptcy before the registration  
in the roster  of experts.

Article (20)  
If the Committee rejects the application for the registration of the expert in the roster 
of experts  or writes  off its registration therefrom , its decision shall be reasoned, and in 
all cases, the decision in this regard shall be  final.  
 
 
 Cabinet Resolution of 20 18 Forming the Financial Restructuring Committee  12

Article (21)  
The experts , whose registration is approved , shall be  regist ered in the roster of experts . 
A summary of the experts' information included in  this roster shall be provided on the 
elec tronic pages determined by the C ommittee.

Article (22)  
The Committee shall provide the Ministry of Justice and local authorities in each 
emirate having  local jurisdiction with its roster of experts, which allows them to 
perform the functions set forth  in the Bankruptcy Law .

Article (23)  
General Provisions  
Any provision that contradicts or in conflict with the provisions of this Resolution shall 
be repealed.

Article (24)  
This Resolution shall be published in the Official Gazette and  shall enter into force 
from  the day following its issuance . 
 
 
 
 
 
 
Mohammed bin Rashid Al -Maktoum  
Prime Minister  
 
Issued by Us  
On: 18 Jumada Al -Awwal 1439 A .H. 
Corresponding to: 4 February 2018 AD