Government of Dubai issues decree to form tribunal related to Dubai World's financial position

This legal framework has been established by Ruler's Decree No. 57 of 2009, establishing a tribunal of three to five internationally recognized judges, which will be empowered if necessary to supervise the financial reorganization of Dubai World and its subsidiaries and which will be authorized to adjudicate disputes relating to restructuring of the debt of Dubai World and any of its subsidiaries.

The Tribunal is initially composed of three senior international judges from the Dubai International Finance Centre Courts.
• Sir Anthony Evans, Chief Justice of the DIFC Courts. Sir Evans is a former High Court Judge of England and Wales.
• Michael Hwang, SC, Deputy Chief Justice of the DIFC Courts. Judge Hwang is a former Judicial Commissioner of the Supreme Court of Singapore and partner at the law firm of Allen & Gledhill.
• Justice Sir John Murray Chadwick, Judge of the DIFC Courts. Judge Chadwick is a former Judge of the Court of Appeal of England and Wales and is a world renowned bankruptcy and insolvency specialist.

Dr. Lowai M.K. Belhoul, the Director General of the Legal Affairs Department of the Government of Dubai, stated: "The Decree establishes a clear, transparent and effective legal framework incorporating international best practices in restructuring."

A copy of the decree contains as follows:

After perusal of:
Federal Law No. (8) of 1984, Concerning Commercial Companies and its Amendments;

Federal Law No. (18) of 1993 Concerning Commercial Transactions and its Amendments;

Law No. (3) of 1992 Concerning the Formation of Courts in the Emirate of Dubai and its Amendments;

Law No. (9) of 2004 Concerning the Establishment of Dubai International Financial Centre;

Law No. (12) of 2004 Concerning the Establishment of the Judicial Authority at the Dubai International Financial Centre;

Dubai International Financial Centre Law No. (10) of 2004 Concerning the Law of the Court of Dubai International Financial Centre;

Law No. (3) of 2006 Establishing Dubai World;
Dubai International Financial Centre Law No. (3) of 2009 Concerning the Law of Insolvency;

Federal Decree No. (35) of 2004 Concerning the Establishment of a Free Financial Zone in the Emirate of Dubai.

The decree hereby follows:

Article (1)
The following words and expressions wherever used in this Decree shall have the meaning indicated opposite each of them, unless the context otherwise implies:

Emirate: The Emirate of Dubai.
Ruler: His Highness the Ruler of Dubai.
Government: The Government of Dubai.
Tribunal: The Tribunal formed by virtue of this Decree.
DIFC: Dubai International Financial Center.
Corporation: Dubai World and/or its Subsidiaries.
Courts: The competent courts in the Emirate, including the DIFC Courts.

Article (2)
There shall be established in the Emirate a Tribunal composed of:

1- Sir. Anthony Evans - Chairman
2- Michael Hwang - Member
3- Sir. John Chadwick - Member

The Chairman may recommend to the Ruler further persons for appointment by the Ruler to the Tribunal. The Tribunal shall not comprise more than 5 members.

Article (3)
The Tribunal has jurisdiction to:
1- Hear and decide any demand or claim submitted against:
a- The Corporation, including hearing and deciding any demand to dissolve or liquidate the Corporation; and
b- Any person related to the settlement of the financial obligations of the Corporation, including the Chairman and members of the Board of Directors, as well as all the employees and workers of the Corporation.

2- Issue the interim and interlocutory orders and decisions, including injunctions to any person to act or not to act, or other order as the Tribunal considers appropriate.

The Tribunal may, as it considers appropriate, assign or appoint as experts persons having expertise and competence in the matters submitted to it.

Article (4)
Subject to the provisions of this Decree, the Tribunal shall decide the demands and claims submitted to it by virtue of:
1- DIFC Law No (3) of 2009 Concerning the law of Insolvency, according to the amendments stated in the Schedule hereto;
2- The Regulations Issued by the Board of Directors of the DIFCA Concerning DIFC Insolvency Regulation, according to the amendments stated in the Schedule hereto;
3- DIFC Law No (10) of 2004 Concerning the Court of DIFC, according to the amendments stated in the Schedule hereto;
4- Legislation in force in the Emirate;
5- Commercial custom; and
6- Principles of justice, and rules of righteousness and equity.

Article (5)
1- The Tribunal shall have its seat and hold its hearings in the DIFC .
2- All proceedings before the Tribunal shall be open to the public unless the Tribunal decides otherwise for considerations relating to the conduct of justice or to protect confidentiality of information.
3- The Tribunal shall issue its decisions and orders (i) by the unanimous or majority votes of its members, and (ii) in the name of the Ruler.
4- The decisions and orders of the Tribunal shall be final, irrevocable and not subject to any appeal or review.
5- The Registrar of the Court of the DIFC shall act as the registrar for the Tribunal.

Article (6)
The decisions and orders issued in the Emirate by the Tribunal shall be executed by a competent execution judge. The execution judge shall not take any action that may hinder the execution of the decision or order issued by the Tribunal.

Article (7)
No member of the Tribunal, nor any employee or agent of the Tribunal, shall be held liable for anything done or omitted to be done in the performance or purported performance of the functions or in the exercise or purported exercise of any powers under this Decree. This Article does not apply if the act or omission is found by the Courts to have been in bad faith.

Article (8)
1- The Government and the DIFC shall provide the necessary administrative and financial support to the Tribunal for it to discharge its duties under this Decree.
2- The Chairman of the Tribunal or the Tribunal member, to whom he delegates such responsibility, shall undertake the task of supervising all the administrative and financial affairs relating to the work of the Tribunal.

Article (9)
The Courts shall not hear or decide any demand, claim or other matter which is within the jurisdiction of the Tribunal by virtue of this Decree.

Article (10)
This Decree shall come into force from the date of its issuing and shall be published in the Official Gazette.