The UAE's Financial Restructuring Committee has formed a new council to boost its community interaction with experts in the field of financial reorganisation of defaulting companies and bankruptcy cases.
The Consultative Council is an “interactive environment with experts and experienced consulting providers”, the Ministry of Finance said on Tuesday.
The council will seek to provide a “continuous exchange of information related to the procedures of financial reorganisation of defaulting companies” and explore means of preparing development programmes, training experts, lawyers and judiciary staff on issues of financial reorganisation and bankruptcy.
The FRC was established in 2018 and oversees the procedures of financial restructuring outside the scope of the court.
The body appoints experts in the field of financial restructuring and establishes an electronic record of people who have a bankruptcy ruling issued against them, either by imposing restrictions as ordered by the court or the loss of eligibility under the provisions of the bankruptcy law.
The FRC will work with the council to discuss obstacles and explore the reasons why the commercial community does not opt for financial reorganisation tools before resorting to the courts to request 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,” the ministry said.
Both parties will also discuss the best ways to communicate relevant information about financial reorganisation procedures.
The council includes at least “seven members who are natural or legal persons who practice their business in the UAE” and are experts in the field of financial reorganisation and bankruptcy.
The members of the council are nominated by the FRC.