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Corporate Sustainability: Legal Responsibilities and Opportunities
Abstract
The UAE Commercial Companies Law No. 32 of 2021 enhances the sustainability of companies by allowing them to engage strategic partners possessing technical, financial, operational, and marketing capabilities. While this legislative change aims to assist struggling companies and boost successful ones, it requires careful consideration due to potential risks, especially concerning the rights of shareholders and creditors. The study explores the company's responsibilities towards shareholders and creditors, focusing on key elements of sustainability: legal responsibilities and guarantees that protect the rights of shareholders and creditors. It also acknowledges the implicit accountability of the strategic partner for any unlawful actions coordinated with the company's board of directors, emphasizing the need for a balanced approach in determining the company's liability when assessing the benefits and potential risks associated with strategic partnerships.
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