Overview

Commercial markets in the UAE are still feeling the shock of the global economic recession, forcing many companies to undergo restructuring to ensure better efficiency and productivity. Yet, many of them are not aware of the legal intricacies and practical complexities surrounding a corporate restructuring.

Corporate restructuring is the process through which the legal, proprietary, operational or other structures of a company are reorganised for better commercial results. The reasons behind a restructuring may vary from company to company.

They could be financial, technical, or organisational in nature and are generally performed to reduce liabilities, improve financial performance, exploit technological expertise, better protect shareholders’ interests, or streamline management. Similarly, the manner in which a restructuring is carried out also differs, and may take various forms such as mergers, acquisitions, joint ventures, strategic alliances, conversions etc.

Habib Al Mulla provides tips for foreign shareholders on corporate restructuring.

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