Open AccessAn analytical study of the criminal liability for founders of joint-stock companies
Author(s) -
Tariq Kameel,
Mohammad Amin Alkrisheh,
Tayil Mahmoud Shiyab
Publication year - 2021
Publication title -
corporate governance and organizational behavior review
Language(s) - English
Resource type - Journals
eISSN - 2521-1889
pISSN - 2521-1870
DOI - 10.22495/cgobrv5i2sip8
Subject(s) - legislature , commit , joint stock company , joint and several liability , limited liability , criminal liability , liability , stock (firearms) , law , criminal law , business , law and economics , legal liability , political science , economics , engineering , mechanical engineering , database , computer science
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 crime