UAE's Dh10 Million Fine Warning: Listed Firms Face June 30 Deadline For Agms

2026-06-08 04:18:19

(MENAFN- Khaleej Times) The UAE's Ministry of Economy and Tourism has called on private joint-stock companies (PJSCs) to hold their Annual General Meetings (AGMs) no later than June 30, 2026, warning that non-compliance will trigger escalating administrative penalties, including fines of up to Dh10 million.

The directive applies to companies whose fiscal year ended on December 31, 2025, and is grounded in Federal Decree-Law No. (32) of 2021 on Commercial Companies.

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The Ministry announced that registration renewal and AGM approval are now fully instant digital services, accessible through its official website. Companies can complete all required procedures without delay, unless a case involves special decisions requiring additional review.

“The commitment of private joint-stock companies to holding general assemblies on their legally mandated dates and submitting governance reports and financial statements through digital systems reflects the maturity of the business environment in the UAE, its high competitiveness, and its adherence to the best advanced governance standards,” said Abdullah bin Touq Al Marri, Minister of Economy and Tourism.

The Ministry clarified that it attaches great importance to the role of general assemblies as the highest legal framework for making fundamental decisions in companies. It stressed that general assembly and board meetings should create a dynamic environment that allows partners and shareholders the freedom to exchange views and discuss directions with complete transparency, while embracing differences and accepting diverse perspectives.

The UAE's corporate sector demonstrated remarkable resilience in the first quarter of 2026, posting double-digit earnings growth even as war-related disruptions rattled trade routes, financial markets and business sentiment across the Middle East.

According to the latest GCC earnings review by Kamco Invest, listed companies in Abu Dhabi and Dubai generated more than $17 billion in profits.

Dh10 million fine

He noted that the digital transformation of services is designed to protect investor rights, strengthen confidence, and support companies' ambitions for listing and growth.

The Ministry stressed that holding the AGM is not merely procedural, but a fundamental legal requirement for maintaining a company's active registration.

Under Ministerial Resolution No. (137) of 2024, registration renewal is directly linked to the submission of AGM minutes and audited financial statements.

The Ministry of Economy and Tourism emphasised that failure to adhere to the specified deadlines constitutes a violation warranting administrative penalties, applied according to a graduated system. This system begins with a warning and a grace period for rectification, escalating to fines that may reach Dh10 million, and other stringent measures in cases of repeated violations. These penalties are in accordance with the provisions of the Decree-Law on Commercial Companies and Cabinet Resolution No. (102) of 2022 concerning the relevant Administrative Penalties Regulations.

The Ministry also reiterated the mandatory requirement for women's representation on company boards of directors in line with requirement enshrined in the Minister of Economy's Decision No. (137) of 2024.