ABU DHABI, 21st June, 2022 (WAM) — The Financial Restructuring Committee (FRC) today formed the Consultative Council of the FRC to provide an open discussion forum between the FRC and the experts in the field of financial reorganisation of defaulting companies and bankruptcy cases.
The formation of the Council comes to create an interactive environment with experts and experienced consulting providers in this field in accordance with best international standards.
The Consultative Council recently held its first meeting for 2022, in the presence of FRC members, the Consultative Council members, as well as experts in the financial field.
During the meeting, Dr. Maryam Butti Al Suwaidi, Vice-Chairman of the Committee and CEO of the Securities and Commodities Authority, delivered the opening speech. Additionally, Dania Kurdy, assistant to the Committee for the implementation work, delivered a detailed presentation on FRC’s role and tasks.
Dr. Hussam Al Talhuni, Legal Advisor to the Minister of Finance and Secretary of the FRC, provided an introductory explanation of the Consultative Council and its role, vision, and objectives. Dr. Al Talhuni also reviewed the structure and objectives behind the establishment of the Consultative Council of the FRC. These objectives include building a bridge of cooperation and interactive working relations between the FRC and the community through open consultation with experts in the field of financial reorganisation of defaulting companies and bankruptcy cases. That, in addition to providing a continuous exchange of information related to the procedures of financial reorganisation of defaulting companies.
The Council was also formed to study the development of the financial reorganisation service, explore means of preparing development programmes, and train experts, lawyers, and the judiciary staff on issues of financial reorganisation and bankruptcy.
The FRC will work with the Consultative Council to discuss obstacles and reasons that limit the commercial community’s desire to use financial reorganisation tools before the FRC or resort to the courts to request financial restructuring or bankruptcy. This is in terms of determining what are the risks, and the appropriate solutions that specialists see in order to address this issue. Both parties will also discuss the best ways to communicate relevant information about financial reorganisation procedures and how to generalise this to the community.
The Consultative Council is the first of its kind at the UAE level. It serves as a bridge of cooperation and interactive working relations between the FRC and experts in the field of financial reorganisation of defaulting companies and bankruptcy cases. This is through providing a continuous exchange of information related to the procedures of financial reorganisation of defaulting companies.
The membership of the Consultative Council shall consist of at least seven members who are natural or legal persons who practice their business in the UAE. The members of the Consultative Council shall be nominated by the FRC members, provided that they are experts in the field of financial reorganisation and bankruptcy.