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Deed Of Association

Deed Of Association Template for United Arab Emirates

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Key Requirements PROMPT example:

Deed Of Association

"I need a Deed of Association for a UAE-based technology consulting firm to be established by March 2025, with three international shareholders (from UK, Singapore, and UAE) holding equal shares, including specific provisions for intellectual property protection and non-compete clauses."

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Document background
The Deed of Association is a mandatory legal document required for establishing any company in the United Arab Emirates, governed primarily by Federal Law No. 32 of 2021. This essential document serves as the company's constitution, detailing its fundamental structure, ownership, and operational framework. It must be prepared when forming a new company or when making substantial changes to an existing company's structure. The Deed of Association includes crucial information such as shareholder details, capital structure, management framework, profit distribution mechanisms, and general operational guidelines. It requires notarization by UAE authorities and must be drafted in Arabic (with optional English translation). The document forms part of the company registration process with the Department of Economic Development and relevant free zone authorities, if applicable. Its contents must comply with UAE commercial law requirements while reflecting the specific agreements between shareholders regarding company governance and operations.
Suggested Sections

1. Parties: Identifies all founding shareholders/partners, including full legal names, nationalities, passport details, and addresses

2. Background: States the parties' intention to establish a company under UAE law and brief context

3. Definitions: Defines key terms used throughout the document

4. Company Name and Legal Form: Specifies the company's trade name and legal structure (LLC, Private Joint Stock, etc.)

5. Company Objects: Details permitted business activities aligned with UAE licensing requirements

6. Principal Office: States the company's registered address and branch locations if any

7. Duration: Specifies the term of the company (typically 99 years unless stated otherwise)

8. Capital and Shares: Details the company's share capital, number of shares, and value per share

9. Share Distribution: Lists shareholders and their respective ownership percentages

10. Management Structure: Describes the management framework, including appointment of managers and their powers

11. Shareholders' Meetings: Procedures for conducting general and extraordinary meetings

12. Financial Year and Accounts: Specifies the financial year and requirements for maintaining accounts

13. Profit and Loss Distribution: Details how profits and losses will be distributed among shareholders

14. Amendments to the Deed: Procedures for modifying the Deed of Association

15. Dissolution and Liquidation: Circumstances and procedures for company dissolution

Optional Sections

1. Pre-emptive Rights: Used when shareholders want specific rights regarding the purchase of new shares

2. Tag-Along Rights: Include when minority shareholders need protection in case of majority stake sale

3. Drag-Along Rights: Used when majority shareholders want the right to force minority shareholders to join in the sale of the company

4. Non-Competition: Include when restrictions on shareholders' involvement in competing businesses are needed

5. Shareholder Loans: Required if shareholders will provide loans to the company

6. Intellectual Property Rights: Include when the company will own or develop significant IP

7. Reserved Matters: Used when certain decisions require special majority or unanimous approval

8. Deadlock Resolution: Include for companies with equal shareholding to address decision-making deadlocks

Suggested Schedules

1. Schedule 1 - Shareholder Details: Detailed information about shareholders including contact details and share certificates

2. Schedule 2 - Capital Contributions: Breakdown of each shareholder's capital contribution, including type (cash/kind)

3. Schedule 3 - Licensed Activities: Complete list of approved business activities with activity codes

4. Schedule 4 - Initial Directors/Managers: Details of initial management team including powers and limitations

5. Schedule 5 - Property Details: If applicable, details of any property owned or leased by the company

6. Appendix A - Shareholders' Resolution Template: Standard format for recording shareholder resolutions

7. Appendix B - Share Transfer Form: Template for documenting share transfers

8. Appendix C - Power of Attorney Template: Standard format for granting management powers

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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Relevant Roles

Chief Executive Officer

Managing Director

Company Secretary

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Shareholder Relations Manager

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