Why Should PrJSCs Consider Adopting The UAE Corporate Governance Code?

The Corporate Governance Code issued pursuant to Ministerial Resolution No. 518 of 2009 concerning Corporate Governance and Disciplinary Measures (as amended) (the Corporate Governance Code) came into effect on 1 May 2010. The Corporate Governance Code made it compulsory for public joint stock companies (PJSCs) to comply with certain corporate governance provisions. Unlike PJSCs, private joint stock companies (PrJSCs), which are regulated by the UAE Ministry of Economy, are not required to comply with any corporate governance provisions. However, PrJSCs may benefit from voluntarily complying with the Corporate Governance Code. Elsie Habib identifies and assesses these potential advantages.