UAE Issues Final Warning: PJSCs Face Dh10 Million Penalty for AGM Delays
The UAE Ministry of Economy and Tourism has issued a strict directive to all private joint-stock companies (PJSCs), mandating that they conduct their Annual General Meetings (AGMs) by the June 30, 2026, deadline. This requirement, which applies to firms with a fiscal year ending on December 31, 2025, is a vital component of the Federal Decree-Law No. (32) of 2021. To streamline the process, the Ministry has introduced instant digital services, allowing businesses to submit financial statements and governance reports online. Authorities emphasize that these meetings are not just a bureaucratic formality but a legal necessity for maintaining active registration and ensuring transparent communication between shareholders and company boards.
Failure to meet these regulatory obligations will result in significant consequences. Under the current administrative penalty framework, companies that miss the deadline will face a graduated system of enforcement, starting with formal warnings and potentially escalating to heavy fines reaching up to Dh10 million for persistent non-compliance. Minister Abdullah bin Touq Al Marri noted that this digital shift aims to bolster investor confidence and maintain the UAE’s competitive edge. Additionally, the Ministry reminded firms of their obligation to comply with diversity mandates, specifically the requirement for women’s representation on boards of directors as outlined in the latest ministerial decisions.