Jimmy Houla, Managing Partner of BSA Ahmad Bin Hezeem and Associates, reviewed the dimensions of the Dubai Courts of First Instance ruling declaring the bankruptcy of Marka company and liquidating its funds, including its subsidiaries, and the expectations about the responsibility of the Board of Directors and the judgments issued in this regard.
In an interview with Al-Arabiya, Houla described the ruling on declaring Marka’s bankruptcy a precedent of its kind, but he reviewed a number of expectations regarding the legal position of the appeal regarding the ruling, especially with regard to convicting and fining the former board members of the company.
chance of appeal
He explained that, with this decision, the court had issued the first ruling of its kind under the bankruptcy law based in the UAE about two years ago, and in which it declared the bankruptcy of a public joint stock company, with the conviction of members of the board of directors and managers and seizing their properties, so that this ruling is also unique in terms of its comprehensiveness.
He said that the prosecution took certain periods before the ruling was issued, which “does not mean that all members of the board of directors are responsible for what happened,” explaining that “the judgment in it is more than one split, the first according to which bankruptcy was declared, and the second concerned with the members of the board of directors, which can be appealed, grievance, or The petition is against him because, under the Commercial Companies Law, members can defend their rights.”
He considered that this ruling comes as a proof of the effectiveness of the bankruptcy law through a realistic practical situation, and it will result in increasing confidence in attracting foreign projects.
The court obligated the former members of the board of directors and the former directors to jointly pay an amount of 448 million dirhams in favor of the creditors.
Marka was launched in 2014 and was the first on the Dubai Financial Market since 2009, targeting $175 million and raising $2.7 billion in approximate numbers.