The UAE Cabinet has approved the issuance of a federal decree-law to amend several provisions of the Federal Law on Commercial Transactions. The amendments include changing certain provision covering bounced cheques and the issuance of cheques without value, by providing fast, advanced and civil mechanisms to collect the required payments.

According to the Decree, which will come into force in January 2022, crimes involving cheques have been redefined. The amendments include amendments aimed at avoiding criminal prosecution and streamlining recourse against a dishonoured cheque amongst others, throughout the Emirates.

Forthcoming amendments aim to expedite and streamline recourse against a dishonoured cheque including a mechanism for collection of the value of the bounced cheque in terms of which banks will be required to partially pay out the value of the cheque that is available in the corresponding bank account. Additional penalties in respect of convicted persons are proposed, these penalties are to include:

 cancellation of their cheque books and prevention of re-issuance of their cheque books for up to 5 years;  their suspension from professional or commercial activities in the Emirates; and  penalties for legal persons, which shall include license suspension or revocation of license in the case of repeat violations by entities in the Emirates.

The amendments also define circumstances in which a bounced cheque will be considered a criminal offence and aims to avoid prosecution for such infractions unless bad faith is present. Provision of an alternative to criminal proceedings should help to remove the stigma associated with bounced cheques and enhance debtor accountability.

Advocates Amna Al Jallaf and Ihab Arja attended the 9th Cape Town Convention Academic Conference which took place in Rome at the UNIDROIT Headquarters 10 and 11 September, 2020.

The topics covered include an in-depth discussion of the impact of COVID-19 on the operation of the CTC, particularly in the context of insolvency law, as well as papers on subjects with great topical relevance, including the interaction between the EU insolvency regulation and the CTC, and judicial breach of the CTC. There were two papers relating to the Pretoria Protocol on mining, agricultural and construction equipment: one considering the amendment provisions and another on the features and challenges of developing the MAC International Registry. There was also a discussion of the judicial guide to the CTC.

As a UAE based Advocacy Firm, Al Jallaf is the only specialist aviation law firm that has rights of audience before Dubai and Federal Courts.

Uniquely, our aviation expertise includes first-hand experience of the commercial, regulatory and operational fields. Notably, as a full-service specialist aviation law firm, our services cover the full spectrum of aviation disputes and transactions, including: regulatory and commercial issues, international interests in Aircraft Equipment (the Cape Town Convention), business jet acquisition, fleet renewal and asset-based financing (including Islamic finance), aviation contract work, corporate governance, crisis management, strategic safety, and brand reputation issues including insurance and reinsurance liability and subrogation work as well as coverage.

A new law providing a clear legal framework to regulate family-owned businesses and facilitate their smooth transfer between successive generations has been promulgated in Dubai.

The law is "optionally" applicable to existing and new family ownerships, including corporate equity securities and proprietorship. Family ownership in public joint stock companies and movable and immovable property are excluded from this law

According to the decree, the validity of a family ownership contract can be extended up to 15 years. It can be renewed for a similar term following the agreement of all concerned parties. The law also regulates the articles of the family ownership contract, the business's structure and management, the formation of the board, the authorities and responsibilities delegated to the board and management as well as the management's powers and limitations.

As per the law, for the family ownership contract to become legally binding, all parties of the contract must be members of the same family and have a single common interest. "Furthermore, the contract must clearly define the share of each member, and parties of the contract must own all the legal rights of the monies and assets that are under the purview of the contract."

The new law No. (4) of 2020 has been issued, outlining the regulations governing drone activity in Dubai.

The Law aims to reduce risks associated with drone activity and specifies the duties and responsibilities of relevant authorities. The new Law also seeks to help Dubai promote itself as a hub for drone manufacturing, smart transportation and innovation in the sector, and enable public and private entities to use drones and provide drone-related services.

The law applies to the activity of all types of drones across Dubai and its free zones. Drones that are used for military purposes are exempted from this law. However, they should coordinate with the Dubai Civil Aviation Authority to ensure safety and avoid endangering civil aviation operations.

According to the law, the Dubai Civil Aviation Authority is tasked with overseeing the implementation of the law and managing all related operations and activities in line with federal legislations and international treaties and conventions. This also includes monitoring and controlling drone activity in their designated airspace and outlining the conditions and procedures for issuing permits and conducting trials. The Dubai Civil Aviation Authority is also tasked with identifying and approving the designated areas and heights within which the operations and trials of drones can be conducted.

Dubai International Financial Centre (DIFC) has enacted Data Protection Law DIFC Law No. 5 of 2020 (DPL) to regulate the processing of personal data in the DIFC.

The DPL comes into force on 1 July 2020. However, businesses will have a grace period of 3 months, until 1 October 2020, to bring their organisations into compliance with the new law.

DIFC's updated Data Protection Law and Regulations set out expectations for Controllers and Processors in the Centre regarding several key privacy and security principles. The Data Protection Law combines the best practices from a variety of current, world class data protection laws, such as the General Data Protection Regulation (GDPR), the California Consumer Privacy Act and other forward-thinking, technology agnostic concepts.

The changes legislate for accountability of Controllers and Processors through compliance programmes requirements, appointing data protection officers where necessary, conducting data protection impact assessments and imposing contractual obligations that protect individuals and their personal data. Enhanced rights of individuals are clarified in terms of data usage by entities that collect and manage personal data, including contractual clarity of such rights when engaging with vendors of emerging technologies, such as Blockchain and Artificial Intelligence (AI). Permit options for cross-border data transfers and special category personal data processing have been removed. The Data Protection Law and Regulations include appropriate data sharing structures between government authorities, which represent a key step forward in data sharing standards within the UAE and the region.

The situation of coronavirus (COVID-19) has led to various preventive measures such as; social distancing and remote working. In this current environment it may not always be possible for proposed signatories to be physically present to provide live signature documents. However, under the UAE Law, electronic signatures can generally be provided in place of wet ink signatures.

1. On Federal Level: UAE Federal Law No.1 of 2006 concerning Electronic Transactions & Commerce (E-Commerce law) regulates electronic signatures (e-signatures) in the UAE. The E-Commerce Law recognizes 3 types of e-signatures: (1) Protected e-signatures This category of e-signatures is the most legally protected. Protected e-signatures are accepted as valid and have probative value unless otherwise established. (2) Other e-signatures E-signatures which are not considered “protected” pursuant to Article 17 of the E-Commerce Law may also be recognized as having legal force and effect, as long as reliance on the e-signature is reasonable. Reasonableness is not presumed in such cases; the court will, in order to determine whether reliance on an e-signature is reasonable, take into account several factors. (3) Foreign e-signatures (Article 23 of the E-Commerce Law) Foreign e-signatures are e-signatures having an authentication certificate issued by a foreign certification provider.

2. On Dubai Level: The Dubai Electronic Transactions and Commerce Law No.2/2002 recognizes the legal validity of electronic documents and electronic signatures as acceptable substitutes for paper documents and ink signatures, respectively. Accordingly, electronic records may be used to comply with a statutory writing requirement, original document requirement and retention requirement, and an electronic signature attached to an electronic document may be used to comply with a statutory requirement for a paper‐and‐ink signature. If all parties are in agreement, a contract may be in electronic form and is just as legally enforceable as a written one.

3. Dubai International Financial Centre (DIFC): DIFC Law No. 2 of 2017 (“Electronic Transactions Law”) clarifies, for all purposes in the DIFC, that electronic signatures are enforceable, that electronic records have equivalent effect to hard copies and that references to “writing” include electronic means.

At Al Jallaf we are in a good position to advise on any issue related to e-Signature. Please do not hesitate to contact us should you have any inquiries or thoughts you wish to share with us.

Al Jallaf Advocates & Legal Consultants is delighted to announce it has been shortlisted for the "Regional Law Firm of the Year" category of the Middle East Legal Awards 2020.

The award ceremony will be taking place at The Ritz-Carlton, Dubai on June 11th, 2020.

A new UAE Space Law is on its way to be released soon. This space law is intended to pave the way and an environment for the private sector and the space economy. This law is yet to come into approvals and it is aimed to attract investments and operations in the economy.

The the law will create an attractive legislative environment, through helping to draft future space policies, in terms of licences, investments and regulations.It will encourage investment in the space sector, including in space tourism and space exploration, he added, while highlighting the presence of over 50 Emirati companies, institutions and establishments in the space sector.

The domestic and international investors are well protected under this new space law which will give them security and the correct environment to encourage investments.

We are delighted to announce that Al Jallaf has been listed among the finalists for the Oath Middle East Legal Awards 2019, in four categories: • Banking & Finance Team of the Year • Litigation & Dispute Resolution Team of the Year • TMT Team of the Year • Law Firm of the Year – UAE

The winners will be announced at the awards ceremony, which will take place at the Westin Dubai Mina Seyahi Beach Resort & Marina on 11 December, 2019.

This year, we are up against some fierce and worthy competition, and we are humbled to have made the shortlist. We would like to thank everyone who has contributed to the successes of our firm over the past year, and in particular those who took the time to nominate us for the award.

We look forward to the award ceremony, now in its fifth year, and hope to celebrate the development of the Middle East's legal market with our peers and colleagues in the industry.

To find out more, please visit The Oath Middle East Legal Awards website, http://www.theoathlegalawards.me/

In a recent matter handled by Gowling WLG (Canada) representing a Canadian Aircraft Financing Company, a Canadian court order implemented, for the first time, "Alternative A" of the insolvency provisions set out in the Convention on International Interests on Mobile Equipment and the Protocol on the Convention on International Interests on Mobile Equipment on Matters Specific to Aircraft Equipment. Alternative A provides many advantages to the secured creditor as it grants more in-depth protection than otherwise available to a secured creditor under bankruptcy and insolvency laws. The debtor has two options upon the occurrence of an "insolvency event" as defined in the Cape Town Convention.

The implications of this choice

1. Upon the occurrence of an insolvency-related event, the insolvency administrator or the debtor, as applicable, shall give possession of the aircraft object to the creditor no later than the end of the waiting period; 2. The registry authority and the administrative authorities in the Contracting State shall make available to the creditor the default remedies provisions stipulated in Article (9) of the Protocol no later than five working days after the date on which the creditor notifies such authorities that it is entitled to procure those remedies, which include a. procure the de-registration of the aircraft; and b. procure the export and physical transfer of the aircraft object from the territory in which it is situated.

The Transaction: In 2017, a helicopter company (the "Helicopter Company") sought an Initial Order under the CCAA. The Aircraft Financing Company was one of the Helicopter Company's secured creditors and had first-ranking security over eight helicopters (the "Helicopters") owned and/or operated by the Helicopter Company, with subordinate security in all other assets that were registered at the Registry. In these circumstances we determined that, the remedies of the Cape Town Convention had to be applied. The CCAA proceedings constituted an "insolvency-related event" as defined in the Aircraft Protocol and enabled the Aircraft Financing Company to benefit from the remedies provided in the Cape Town Convention, in particular, Alternative A. Canada chose to ratify the Cape Town Convention and to adopt Alternative A. As such, a Canadian court had to comply with the obligations under the Cape Town Convention and enforce a security/international interest duly registered in the Registry. In light of the arguments of Gowling WLG professionals, the Aircraft Financing Company was permitted to sell the Helicopters, and for the first time a Canadian Court recognized the application of the Alternative A remedy. The buyers of the Helicopters also had to deal with the deregistration process. The Aircraft Protocol allows an irrevocable deregistration and export request authorization for an Aircraft Object, from a civil registry of the Aircraft Object as a remedy for default by a debtor. In this Transaction, a court order confirmed the transfer of title free and clear of all rights and ordered all regulatory authorities to effect the change of ownership.

Conclusion: In practice, the application of the Cape Town Convention is not as simple as intended. Not all Contracting States, when faced with a situation where the Cape Town Convention is applicable, recognize and apply the Cape Town Convention as expected by ratification. Indeed, the recognition and scope of the Cape Town Convention are not the same for all Contracting States. However, in Canada, the Transaction has set a precedent for the procedure to be followed by other Canadian courts in similar circumstances.

Source: https://gowlingwlg.com/en/insights-resources/articles/2019/insolvency-provisions-of-the-cape-town-convention/