INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(308597, 29439, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
(308598, 29439, 'MetaLink', 'content'),
(308599, 29439, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308600, 29439, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 size-large\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"640\" height=\"943\" />Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
(308601, 29439, 'ClientIP', '83.111.236.141'),
(308602, 29439, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308603, 29439, 'CurrentUserID', '5'),
(308604, 29439, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308605, 29439, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308606, 29440, 'PostID', '8189'),
(308607, 29440, 'PostType', 'law_update_articles'),
(308608, 29440, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308609, 29440, 'PostStatus', 'publish'),
(308610, 29440, 'PostDate', '2018-09-04 07:49:10'),
(308611, 29440, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308612, 29440, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308613, 29440, 'ClientIP', '83.111.236.141'),
(308614, 29440, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308615, 29440, 'CurrentUserID', '5'),
(308616, 29440, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308617, 29440, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308618, 29441, 'PostID', '8189'),
(308619, 29441, 'PostType', 'law_update_articles'),
(308620, 29441, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308621, 29441, 'PostStatus', 'publish'),
(308622, 29441, 'PostDate', '2018-09-04 07:49:10'),
(308623, 29441, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308624, 29441, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308625, 29441, 'ClientIP', '83.111.236.141'),
(308626, 29441, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308627, 29441, 'CurrentUserID', '5'),
(308628, 29441, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308629, 29441, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308630, 29442, 'PostID', '8189'),
(308631, 29442, 'PostType', 'law_update_articles'),
(308632, 29442, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308633, 29442, 'PostStatus', 'publish'),
(308634, 29442, 'PostDate', '2018-09-04 07:49:10'),
(308635, 29442, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308636, 29442, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308637, 29442, 'ClientIP', '83.111.236.141'),
(308638, 29442, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308639, 29442, 'CurrentUserID', '5'),
(308640, 29442, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308641, 29442, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308642, 29443, 'PostID', '8189'),
(308643, 29443, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308644, 29443, 'PostStatus', 'publish'),
(308645, 29443, 'PostType', 'law_update_articles'),
(308646, 29443, 'PostDate', '2018-09-04 07:49:10'),
(308647, 29443, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308648, 29443, 'MetaID', '226404'),
(308649, 29443, 'MetaKey', 'content'),
(308650, 29443, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 \" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"447\" height=\"659\" />Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>');
INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(308651, 29443, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 size-large\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"640\" height=\"943\" />Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
(308652, 29443, 'MetaLink', 'content'),
(308653, 29443, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308654, 29443, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 size-large\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"640\" height=\"943\" />Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 \" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"447\" height=\"659\" />Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
(308655, 29443, 'ClientIP', '83.111.236.141'),
(308656, 29443, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308657, 29443, 'CurrentUserID', '5'),
(308658, 29443, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308659, 29443, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308660, 29444, 'PostID', '8189'),
(308661, 29444, 'PostType', 'law_update_articles'),
(308662, 29444, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308663, 29444, 'PostStatus', 'publish'),
(308664, 29444, 'PostDate', '2018-09-04 07:49:10'),
(308665, 29444, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308666, 29444, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308667, 29444, 'ClientIP', '83.111.236.141'),
(308668, 29444, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308669, 29444, 'CurrentUserID', '5'),
(308670, 29444, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308671, 29444, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308672, 29445, 'PostID', '8189'),
(308673, 29445, 'PostType', 'law_update_articles'),
(308674, 29445, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308675, 29445, 'PostStatus', 'publish'),
(308676, 29445, 'PostDate', '2018-09-04 07:49:10'),
(308677, 29445, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308678, 29445, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308679, 29445, 'ClientIP', '83.111.236.141'),
(308680, 29445, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308681, 29445, 'CurrentUserID', '5'),
(308682, 29445, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308683, 29445, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308684, 29446, 'PostID', '8189'),
(308685, 29446, 'PostType', 'law_update_articles'),
(308686, 29446, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308687, 29446, 'PostStatus', 'publish'),
(308688, 29446, 'PostDate', '2018-09-04 07:49:10'),
(308689, 29446, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308690, 29446, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308691, 29446, 'ClientIP', '83.111.236.141'),
(308692, 29446, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308693, 29446, 'CurrentUserID', '5'),
(308694, 29446, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308695, 29446, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308696, 29447, 'PostID', '8189'),
(308697, 29447, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308698, 29447, 'PostStatus', 'publish'),
(308699, 29447, 'PostType', 'law_update_articles'),
(308700, 29447, 'PostDate', '2018-09-04 07:49:10'),
(308701, 29447, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308702, 29447, 'MetaID', '226404'),
(308703, 29447, 'MetaKey', 'content'),
(308704, 29447, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 \" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"579\" height=\"854\" /></h3>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>');
INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(308705, 29447, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 \" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"447\" height=\"659\" />Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
(308706, 29447, 'MetaLink', 'content'),
(308707, 29447, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308708, 29447, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 \" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"447\" height=\"659\" />Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 \" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"579\" height=\"854\" /></h3>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
(308709, 29447, 'ClientIP', '83.111.236.141'),
(308710, 29447, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308711, 29447, 'CurrentUserID', '5'),
(308712, 29447, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308713, 29447, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308714, 29448, 'PostID', '8189'),
(308715, 29448, 'PostType', 'law_update_articles'),
(308716, 29448, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308717, 29448, 'PostStatus', 'publish'),
(308718, 29448, 'PostDate', '2018-09-04 07:49:10'),
(308719, 29448, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308720, 29448, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308721, 29448, 'ClientIP', '83.111.236.141'),
(308722, 29448, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308723, 29448, 'CurrentUserID', '5'),
(308724, 29448, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308725, 29448, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308726, 29449, 'PostID', '8189'),
(308727, 29449, 'PostType', 'law_update_articles'),
(308728, 29449, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308729, 29449, 'PostStatus', 'publish'),
(308730, 29449, 'PostDate', '2018-09-04 07:49:10'),
(308731, 29449, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308732, 29449, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308733, 29449, 'ClientIP', '83.111.236.141'),
(308734, 29449, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308735, 29449, 'CurrentUserID', '5'),
(308736, 29449, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308737, 29449, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308738, 29450, 'PostID', '8189'),
(308739, 29450, 'PostType', 'law_update_articles'),
(308740, 29450, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308741, 29450, 'PostStatus', 'publish'),
(308742, 29450, 'PostDate', '2018-09-04 07:49:10'),
(308743, 29450, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308744, 29450, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308745, 29450, 'ClientIP', '83.111.236.141'),
(308746, 29450, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308747, 29450, 'CurrentUserID', '5'),
(308748, 29450, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308749, 29450, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308750, 29451, 'PostID', '8189'),
(308751, 29451, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308752, 29451, 'PostStatus', 'publish'),
(308753, 29451, 'PostType', 'law_update_articles'),
(308754, 29451, 'PostDate', '2018-09-04 07:49:10'),
(308755, 29451, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308756, 29451, 'MetaID', '226404'),
(308757, 29451, 'MetaKey', 'content'),
(308758, 29451, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 \" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"579\" height=\"854\" /></h3>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>');
INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(308759, 29451, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 \" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"579\" height=\"854\" /></h3>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
(308760, 29451, 'MetaLink', 'content'),
(308761, 29451, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308762, 29451, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 \" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"579\" height=\"854\" /></h3>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8241\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_10_Image_0001.jpg\" alt=\"\" width=\"1595\" height=\"352\" /></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The UAE Companies Law (Fed. Law 2 of 2015) mandates that the management of a limited liability company (\"LLC\") to be undertaken by one or more managers as determined by the partners (i.e. the shareholders) in the memorandum of association. Such managers can be selected from either the partners or from third parties. We receive plenty of questions from UAE LLCs asking us about the powers of their managers. This article explores the most common questions we receive in respect of the methods of appointing managers, their powers and authorities, the instruments needed to effect the aforementioned and the method of revoking said instruments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Without a delegation instrument which grants powers to managers to manage the businesses and sign on behalf of LLCs, managers may not be able to perform their roles. Third parties, including courts, regulators and other contracting parties regularly query whether managers have the requisite authority to sign applicable documents or make decisions on behalf of the company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Appointing Managers of LLCs</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The most common method to appoint LLC managers and define their authorities is to embed provisions in the company’s memorandum of association (\"MOA\").</p>\r\n<p dir=\"LTR\" align=\"LEFT\">If the MOA does not list the managers of the LLC, the partners should appoint managers under a general assembly resolution or another delegation instrument of the partners.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Powers of LLC Managers</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Managers of LLC shall hold a duly notarized document evidencing their powers and authorities. This document may be the MOA itself, a partner/general assembly resolution and/or a power of attorney (\"POA\"). Generally, an LLC manager is authorised to assume full powers of the company’s management and their actions bind the company, unless their powers are restricted by an appointment contract, the MOA or the LLC’s bylaws.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The Dubai Court of Cassation in its judgment in its Case 164 of 2008 confirmed that unless explicitly prohibited in the MOA \"<em>The manager of an LLC is the person having full authority of the management of the company, and he/she has competence to make dispositions over the rights relating to its activities, including an agreement to arbitrate</em>\". Also, Article (4)(e) of Ministerial Resolution No. (272) of 2016 concerning the Application of Some Provisions of Public Joint Stock Companies to Limited Liability Companies (\"Resolution\") provides that the powers and authorities of manager(s) shall be determined by the MOA or by a general assembly meeting resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">POAs as a Delegation Instrument</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Delegation instruments are instruments used to delegate powers and authorities from one party to another. They come in different forms such as POAs (a notarized delegation instrument), proxies and delegation letters.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The principal (party issuing the POA) must have the power it wishes to grant to the attorney. A POA in the UAE must specify the powers given to the attorney to have legal effect. There is also no specific form required for the validity of a POA. It should, however, be notarized and certified by the relevant authorities and should contain the following information:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">the details of the principal;</li>\r\n 	<li dir=\"LTR\">the details of the attorney;</li>\r\n 	<li dir=\"LTR\">the powers being delegated;</li>\r\n 	<li dir=\"LTR\">date of issuance;</li>\r\n 	<li dir=\"LTR\">capacity of the principal (for example: \"in my capacity as manager of X company\");</li>\r\n 	<li dir=\"LTR\">duration of POA, if any;</li>\r\n 	<li dir=\"LTR\">any other requirements made by the notary public.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also worth noting that in the UAE, POAs are not capable of being irrevocable i.e. the principal can cancel the attorney’s authority at any time.</p>\r\n&nbsp;\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"Managers of limited liability companies shall hold a duly notarized document which evidences their powers and authorities.\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Cancellation of Power of Attorney, Delegations and General Assembly Resolutions</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Powers of Attorney</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among other less common situations, there are situations that arise in which the POA granted to an attorney is mutually or automatically terminated and others in which the principal dismisses the attorney and wishes to revoke the POA.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8270 \" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/Screen-Shot-2018-09-05-at-2.50.22-PM-695x1024.png\" alt=\"\" width=\"579\" height=\"854\" /></h3>\r\n<p dir=\"LTR\" align=\"LEFT\"><em>i. The termination of the POA</em></p>\r\n<p dir=\"LTR\" style=\"padding-left: 30px;\" align=\"LEFT\">Article 954 of the Civil Code provides the circumstances in which a POA may be terminated, as follows:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">upon the completion of the work which was delegated;</li>\r\n 	<li dir=\"LTR\">upon the expiration of the term of the POA;</li>\r\n 	<li dir=\"LTR\">upon the death of the principal or his/her ceasing to have legal capacity; or</li>\r\n 	<li dir=\"LTR\">upon the death of the attorney or his/her ceasing to be of legal capacity.</li>\r\n</ul>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>ii. Dismissal of the Manager and revocation of POA</em></p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Generally, a principal may dismiss or restrict the powers of an attorney at its discretion, unless (i) third party rights have arisen by virtue of the POA; or (ii) if the POA was granted for the benefit of the attorney, in which case the principal may not terminate or restrict the POA without the consent of the person for whose benefit it was created. If the POA is issued in favor of the attorney, i.e,. it provides the attorney with some beneficial rights, the principal may not terminate or limit the POA without the consent of the attorney. The principal may be liable for any harm caused to the attorney as a result of termination/revocation of the POA at an inappropriate time without an acceptable reason. In practice, for the principal to dismiss an attorney (i.e. revoke the POA), the principal must sign and notarize a revocation instrument before the notary public. The revocation is then reflected in the notary public’s system and notified to the attorney by the principal by way of registered mail. The attorney must cease acting on behalf of the principal upon receipt of said notification. Even though not required by law, as a precautionary measure, principals should publish the revocation of the POA in the newspaper.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Delegations</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Written delegations which have not been notarized may be revoked simply by written notification to the delegate.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Additional steps should be taken to revoke delegations granted to attend general assembly/board meetings, such as notifying the company concerned.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>General Assembly Resolutions</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">General Assembly resolutions cannot be revoked or cancelled.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">They may, however, be superseded by general assembly resolution, which rectifies, alters, replaces, revokes, cancels or amends the previous partners’ resolution.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As there is no legal requirement to notarize general assembly resolutions, a notarized partners’ resolution may only be replaced/revoked by way of a notarized partners’ resolution.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Conclusion</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">As previously mentioned, managers of LLCs perform their roles through a delegation instrument which grants powers to them to manage the businesses and sign on behalf of LLCs. The most common delegation instrument is the MOA. In circumstances where the MOA does not provide such delegation, a general assembly resolution or a POA is resorted to. Determining the method of delegating powers to managers of LLCs will be dependent on the circumstances applicable to each particular case.</p>\r\n&nbsp;\r\n\r\n<em>Al Tamimi &amp; Company’s corporate commercial team regularly advises on ECM, M&amp;As, and corporate commercial matters. For further information please contact <a href=\"https://www.tamimi.com/lawyer/sarah-tomy/\">Sarah Mohamed Tomy</a> (<a href=\"mailto:s.tomy@tamimi.com\">s.tomy@tamimi.com</a>) or <a href=\"https://www.tamimi.com/lawyer/mohamed-khodeir/\">Mohamed Khodeir</a> (<a href=\"mailto:m.khodeir@tamimi.com\">m.khodeir@tamimi.com</a>).</em>'),
(308763, 29451, 'ClientIP', '83.111.236.141'),
(308764, 29451, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308765, 29451, 'CurrentUserID', '5'),
(308766, 29451, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308767, 29451, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308768, 29452, 'PostID', '8189'),
(308769, 29452, 'PostType', 'law_update_articles'),
(308770, 29452, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308771, 29452, 'PostStatus', 'publish'),
(308772, 29452, 'PostDate', '2018-09-04 07:49:10'),
(308773, 29452, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308774, 29452, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308775, 29452, 'ClientIP', '83.111.236.141'),
(308776, 29452, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308777, 29452, 'CurrentUserID', '5'),
(308778, 29452, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308779, 29452, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308780, 29453, 'PostID', '8189'),
(308781, 29453, 'PostType', 'law_update_articles'),
(308782, 29453, 'PostTitle', 'Corporate Governance in Action in UAE Companies: Issues with Management Authorities'),
(308783, 29453, 'PostStatus', 'publish'),
(308784, 29453, 'PostDate', '2018-09-04 07:49:10'),
(308785, 29453, 'PostUrl', 'https://www.tamimi.com/law-update-articles/corporate-governance-in-action-in-uae-companies-issues-with-management-authorities/'),
(308786, 29453, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8189&amp;action=edit'),
(308787, 29453, 'ClientIP', '83.111.236.141'),
(308788, 29453, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308789, 29453, 'CurrentUserID', '5'),
(308790, 29453, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308791, 29453, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308792, 29454, 'PostID', '8195'),
(308793, 29454, 'PostType', 'law_update_articles'),
(308794, 29454, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308795, 29454, 'PostStatus', 'publish'),
(308796, 29454, 'PostDate', '2018-09-04 07:45:52'),
(308797, 29454, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308798, 29454, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308799, 29454, 'ClientIP', '83.111.236.141'),
(308800, 29454, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308801, 29454, 'CurrentUserID', '5'),
(308802, 29454, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308803, 29454, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308804, 29455, 'PostID', '8195'),
(308805, 29455, 'PostType', 'law_update_articles'),
(308806, 29455, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308807, 29455, 'PostStatus', 'publish'),
(308808, 29455, 'PostDate', '2018-09-04 07:45:52'),
(308809, 29455, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308810, 29455, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308811, 29455, 'ClientIP', '83.111.236.141'),
(308812, 29455, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308813, 29455, 'CurrentUserID', '5'),
(308814, 29455, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308815, 29455, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308817, 29456, 'PostType', 'law_update_articles'),
(308818, 29456, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308819, 29456, 'PostStatus', 'publish'),
(308820, 29456, 'PostDate', '2018-09-04 07:45:52'),
(308821, 29456, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308822, 29456, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308823, 29456, 'ClientIP', '83.111.236.141'),
(308824, 29456, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308825, 29456, 'CurrentUserID', '5'),
(308826, 29456, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308827, 29456, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308828, 29457, 'PostID', '8195'),
(308829, 29457, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308830, 29457, 'PostStatus', 'publish'),
(308831, 29457, 'PostType', 'law_update_articles'),
(308832, 29457, 'PostDate', '2018-09-04 07:45:52'),
(308833, 29457, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308834, 29457, 'MetaID', '226600'),
(308835, 29457, 'MetaKey', 'content'),
(308836, 29457, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>&nbsp;\r\n&nbsp;<img class=\"aligncenter size-full wp-image-8271\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_84364579.jpg\" alt=\"\" width=\"4288\" height=\"2099\" />&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\n\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).');
INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(308837, 29457, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\n&nbsp;\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).'),
(308838, 29457, 'MetaLink', 'content'),
(308839, 29457, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308840, 29457, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\n&nbsp;\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).|<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>&nbsp;\r\n&nbsp;<img class=\"aligncenter size-full wp-image-8271\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_84364579.jpg\" alt=\"\" width=\"4288\" height=\"2099\" />&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\n\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).'),
(308841, 29457, 'ClientIP', '83.111.236.141'),
(308842, 29457, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308843, 29457, 'CurrentUserID', '5'),
(308844, 29457, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308845, 29457, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308846, 29458, 'PostID', '8195'),
(308847, 29458, 'PostType', 'law_update_articles'),
(308848, 29458, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308849, 29458, 'PostStatus', 'publish'),
(308850, 29458, 'PostDate', '2018-09-04 07:45:52'),
(308851, 29458, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308852, 29458, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308853, 29458, 'ClientIP', '83.111.236.141'),
(308854, 29458, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308855, 29458, 'CurrentUserID', '5'),
(308856, 29458, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308857, 29458, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308858, 29459, 'PostID', '8195'),
(308859, 29459, 'PostType', 'law_update_articles'),
(308860, 29459, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308861, 29459, 'PostStatus', 'publish'),
(308862, 29459, 'PostDate', '2018-09-04 07:45:52'),
(308863, 29459, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308864, 29459, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308865, 29459, 'ClientIP', '83.111.236.141'),
(308866, 29459, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308867, 29459, 'CurrentUserID', '5'),
(308868, 29459, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308869, 29459, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308870, 29460, 'PostID', '8195'),
(308871, 29460, 'PostType', 'law_update_articles'),
(308872, 29460, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308873, 29460, 'PostStatus', 'publish'),
(308874, 29460, 'PostDate', '2018-09-04 07:45:52'),
(308875, 29460, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308876, 29460, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308877, 29460, 'ClientIP', '83.111.236.141'),
(308878, 29460, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308879, 29460, 'CurrentUserID', '5'),
(308880, 29460, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308881, 29460, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308882, 29461, 'PostID', '8195'),
(308883, 29461, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308884, 29461, 'PostStatus', 'publish'),
(308885, 29461, 'PostType', 'law_update_articles'),
(308886, 29461, 'PostDate', '2018-09-04 07:45:52'),
(308887, 29461, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308888, 29461, 'MetaID', '226600'),
(308889, 29461, 'MetaKey', 'content');
INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(308890, 29461, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8271\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_84364579.jpg\" alt=\"\" width=\"4288\" height=\"2099\" /></h3>&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).'),
(308891, 29461, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>&nbsp;\r\n&nbsp;<img class=\"aligncenter size-full wp-image-8271\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_84364579.jpg\" alt=\"\" width=\"4288\" height=\"2099\" />&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\n\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).'),
(308892, 29461, 'MetaLink', 'content'),
(308893, 29461, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308894, 29461, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"></h3>\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>&nbsp;\r\n&nbsp;<img class=\"aligncenter size-full wp-image-8271\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_84364579.jpg\" alt=\"\" width=\"4288\" height=\"2099\" />&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\n\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).|<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8271\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_84364579.jpg\" alt=\"\" width=\"4288\" height=\"2099\" /></h3>&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).'),
(308895, 29461, 'ClientIP', '83.111.236.141'),
(308896, 29461, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308897, 29461, 'CurrentUserID', '5'),
(308898, 29461, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308899, 29461, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308900, 29462, 'PostID', '8195'),
(308901, 29462, 'PostType', 'law_update_articles'),
(308902, 29462, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308903, 29462, 'PostStatus', 'publish'),
(308904, 29462, 'PostDate', '2018-09-04 07:45:52'),
(308905, 29462, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308906, 29462, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308907, 29462, 'ClientIP', '83.111.236.141'),
(308908, 29462, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308909, 29462, 'CurrentUserID', '5'),
(308910, 29462, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308911, 29462, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308912, 29463, 'PostID', '8195'),
(308913, 29463, 'PostType', 'law_update_articles'),
(308914, 29463, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308915, 29463, 'PostStatus', 'publish'),
(308916, 29463, 'PostDate', '2018-09-04 07:45:52'),
(308917, 29463, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308918, 29463, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit');
INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(308919, 29463, 'ClientIP', '83.111.236.141'),
(308920, 29463, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308921, 29463, 'CurrentUserID', '5'),
(308922, 29463, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308923, 29463, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308924, 29464, 'PostID', '8195'),
(308925, 29464, 'PostType', 'law_update_articles'),
(308926, 29464, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308927, 29464, 'PostStatus', 'publish'),
(308928, 29464, 'PostDate', '2018-09-04 07:45:52'),
(308929, 29464, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308930, 29464, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308931, 29464, 'ClientIP', '83.111.236.141'),
(308932, 29464, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308933, 29464, 'CurrentUserID', '5'),
(308934, 29464, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308935, 29464, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308936, 29465, 'PostID', '8195'),
(308937, 29465, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308938, 29465, 'PostStatus', 'publish'),
(308939, 29465, 'PostType', 'law_update_articles'),
(308940, 29465, 'PostDate', '2018-09-04 07:45:52'),
(308941, 29465, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308942, 29465, 'MetaID', '226600'),
(308943, 29465, 'MetaKey', 'content'),
(308944, 29465, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8271\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_84364579.jpg\" alt=\"\" width=\"4288\" height=\"2099\" /></h3>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).'),
(308945, 29465, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8271\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_84364579.jpg\" alt=\"\" width=\"4288\" height=\"2099\" /></h3>&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).'),
(308946, 29465, 'MetaLink', 'content'),
(308947, 29465, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308948, 29465, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8271\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_84364579.jpg\" alt=\"\" width=\"4288\" height=\"2099\" /></h3>&nbsp;\r\n&nbsp;<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).|<p dir=\"LTR\" align=\"LEFT\">The recent headlines about fake degrees have caused shockwaves in the region. In this article we look at the phenomenon from a regional perspective, the legal issues and the ramifications.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Diploma Mill</h3>\r\n&nbsp;\r\n\r\n<img class=\"wp-image-8216 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/5.jpg\" alt=\"\" width=\"595\" height=\"272\" />\r\n<p dir=\"LTR\" align=\"LEFT\">The phenomenon of fake diplomas production dates back to Middle Ages in France and Italy.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The concept is known as \"diploma mill\" or a \"degree mill\" and refers to a non-accredited company that declares itself as a higher educational institution and awards worthless degrees for a certain fee. In some cases, diploma mills may claim to give credits for \"relevant life experience\", whereas in other cases the victims of the scam may have to pass online exams and write term papers thereby creating an impression of real education. To strengthen their position, diploma mills closely cooperate with accreditation mills, set up for the purpose of providing an appearance of authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In some cases the student knows he is buying a fake degree and in others the student is an unwitting victim of a scam.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Catch me if you can</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In 2015 the <em>New York Times</em> published a report exposing a global scam developed by company in Pakistan which had sold thousands of diplomas of non-existing universities through a complex web of 370 websites including school sites, fake accreditation bodies, recruitment agencies, language schools and even a law firm. Apparently the firm was generating millions of dollars every month.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Among the more alarming revelations was that the company sold aeronautical degrees to airline employees, medical degrees to hospital workers, engineering degrees to site workers and law degrees to dropped out students.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">According to the report, more than 3,000 people in the Middle East hold degrees from bogus universities from this company.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">KSA</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">In Saudi Arabia the sectors that appear to be most affected by fake degrees are healthcare and construction. According to the Saudi Commission for Health Specialties 3,755 forgery cases involving health practitioners were revealed, with 57 physicians being arrested and prosecuted. The Saudi Council of Engineers detected 2,294 fake engineering certificates held by individuals applying to work in the Kingdom.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Qatar</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">When the scandal broke out, the government reacted immediately by introducing new regulations, according to which graduates of foreign universities were required to obtain a letter from their institutions confirming specific details about their courses before receiving approval for a residence permit. Moreover, the companies were prohibited to hire people who have studied for all or part of their degrees online.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Kuwait</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The forged degrees scandal came only a few weeks after the government issued a new regulation requiring all engineers in Kuwait to be registered and certified by the Kuwait Engineering Society. Kuwaiti authorities decided to tackle the problem from several angles:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Kuwaiti Ministry of Foreign Affairs offices abroad have been warned not to approve any university degrees without coordinating first with the Kuwaiti National Accreditation Bureau;</li>\r\n 	<li dir=\"LTR\">the Health Minister has ordered the formation of a special committee to examine and validate university postgraduate degrees of Ministry of Health employees including both Kuwaiti and expat doctors, nurses, pharmacists, technicians and administrative staff members;</li>\r\n 	<li dir=\"LTR\">the Ministry of Higher Education has started collaboration with the Ministry of Interior to scrutinize suspect certificates;</li>\r\n 	<li dir=\"LTR\">parliamentarians have submitted draft legislation on how to combat this crime in a more effective way as well as proposals for legal action to be undertaken against wrongdoers (such as corrective measures against promotions or wage raises); and</li>\r\n 	<li dir=\"LTR\">criminal cases are moving towards trial against accused violator and some have already been convicted. Moreover, five people suspected of holding fake university degrees have been jailed pending investigation and trial and 45 others are under investigation.</li>\r\n</ul>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">UAE</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The government introduced a preventive measure for potential victims of this fraud by publishing a list of genuine universities which provide online education, whose degrees are recognised and will be accredited in the UAE. The list can be found on Ministry of Education website, so every resident who wants to enroll for distance learning course can check his preferred university for authenticity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It has been reported that expats found to be using fake degrees will face a life ban from working in the UAE.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Worldwide</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of fake degrees is a global phenomenon. In the last few weeks a US Republican party candidate has admitted to posing with a fake diploma. In United Kingdom, the police had to re-examine 700 cases that a falsely credentialed police criminologist had worked on. In Australia police had to investigate a sophisticated Chinese forgery business charging thousands of dollars for fake degrees and diplomas from nearly 100 of Australia’s leading institutions.</p>\r\n&nbsp;\r\n<h2>\"Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"aligncenter size-full wp-image-8271\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_84364579.jpg\" alt=\"\" width=\"4288\" height=\"2099\" /></h3>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Criminal law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The concept of issuing and using a fake degree constitutes a crime in every GCC jurisdiction. The type of crime and punishment, however, differs from country to country. In most cases the authorities rely on regulations related to fraud, forgery and misrepresentation when dealing with fake degrees.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">By way of example the punishment in KSA for forgery and misrepresentation in different cases will vary from fines in the range of SAR 300,000-700,000 and imprisonment for the period from one to seven years, followed by (in respect of non-nationals) deportation and a life ban from entering KSA. Whereas in the UAE the convicted shall be sentenced to up to ten years of imprisonment.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In respect of government employees the sanctions are generally more severe.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The novelty of this phenomenon, the diversity of its variations and wide range of consequences means that the authorities are now looking at putting in place specific laws (or sections of laws) that deal with fake degrees (as opposed to fraud/forgery/misrepresentation generally).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The general principle in criminal law is that the accused must have had intent to commit a crime. Therefore those unwitting students who were victims of a scam may not face criminal sanction; obviously the court would consider whether a person in the accused’s position, using reasonable judgement, would have considered the university to be genuine.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Employment law considerations</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Background checks</p>\r\n<p dir=\"LTR\" align=\"LEFT\">From a risk management point of view an employer should carry out background checks prior to commencement of employment in order to establish the candidate’s academic credentials. This is not as easy as it might sound; in many cases employers outsource this task to a specialist company. Some employers would do this as part of a wider background check in relation to criminal records etc. It goes without saying that where the employer is an educational institution itself then this is an area of huge potential risk and deserves the commensurate focus.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It is also possible to check the authenticity of credentials by contacting the Commission for Academic Accreditation and/or Ministry of Education.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">As regards existing employees, the employer may consider background checking employees in sensitive positions to ensure they hold the necessary accreditation.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The <em>New York Times</em> has published a list of bogus universities and it is not difficult to search for ‘graduates’ of such universities via social media, so an employer could quickly establish if any of its existing employees fall into this category.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Vicarious liability</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Employers are in a high risk group when it comes to damages indirectly caused by fake degrees. The concept of vicarious liability is one that can make an employer liable for the actions of an employee carried out in the course of their employment.</p>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\"><em>Termination</em></p>\r\n<p dir=\"LTR\" align=\"LEFT\">Offers of employment are generally conditional upon verification of academic references, failing which the offer is withdrawn. Where the employee is already in the job for some time and it becomes apparent that his degree is fake then the employer could terminate him for gross misconduct. In all the GCC countries there is a provision in the labour law to this effect. That termination would be without notice and without end of service gratuity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The employee would be entitled to due process; i.e. he would be entitled to state his defence to the allegation. He may be able to prove that he was an innocent victim in which case the employer would have to decide the appropriate action to take. In some cases it will be irrelevant whether the employee was an unwitting victim or not; i.e. his position absolutely requires him to hold a degree/diploma- e.g. doctor, nurse, engineer etc. In other cases the degree may have been preferable but not mandatory - e.g. sales manager - in which case the employer may decide to retain him as he has performed the job well over the years.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">In all gross misconduct terminations legal advice should be sought as there may be other factors to consider (was the degree the primary documentation relied on by the employer? Did the employer become informally aware of the fake degree previously? etc).</p>\r\nAl Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/sectors/education/\">Education team</a> supports education providers on all legal aspects of their operations. For further information please contact <a href=\"https://www.tamimi.com/lawyer/ivor-mcgettigan/\">Ivor McGettigan</a> (<a href=\"mailto:i.mcgettigan@tamimi.com\">i.mcgettigan@tamimi.com</a>).'),
(308949, 29465, 'ClientIP', '83.111.236.141');
INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(308950, 29465, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308951, 29465, 'CurrentUserID', '5'),
(308952, 29465, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308953, 29465, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308954, 29466, 'PostID', '8195'),
(308955, 29466, 'PostType', 'law_update_articles'),
(308956, 29466, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308957, 29466, 'PostStatus', 'publish'),
(308958, 29466, 'PostDate', '2018-09-04 07:45:52'),
(308959, 29466, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308960, 29466, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308961, 29466, 'ClientIP', '83.111.236.141'),
(308962, 29466, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308963, 29466, 'CurrentUserID', '5'),
(308964, 29466, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308965, 29466, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308966, 29467, 'Attempts', '2'),
(308967, 29467, 'Username', 'Website Visitor'),
(308968, 29467, 'Msg', 'times'),
(308969, 29467, 'URL', 'https://www.tamimi.com/cdn-cgi/l/email-protection'),
(308970, 29467, 'ClientIP', '46.229.168.67'),
(308971, 29467, 'UserAgent', 'Mozilla/5.0 (compatible; SemrushBot/2~bl; +http://www.semrush.com/bot.html)'),
(308972, 29468, 'PostID', '8195'),
(308973, 29468, 'PostType', 'law_update_articles'),
(308974, 29468, 'PostTitle', 'Faking It: The Fall-out from the Bogus Degree Epidemic'),
(308975, 29468, 'PostStatus', 'publish'),
(308976, 29468, 'PostDate', '2018-09-04 07:45:52'),
(308977, 29468, 'PostUrl', 'https://www.tamimi.com/law-update-articles/faking-it-the-fall-out-from-the-bogus-degree-epidemic/'),
(308978, 29468, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8195&amp;action=edit'),
(308979, 29468, 'ClientIP', '83.111.236.141'),
(308980, 29468, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308981, 29468, 'CurrentUserID', '5'),
(308982, 29468, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308983, 29468, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308984, 29469, 'PostID', '8196'),
(308985, 29469, 'PostType', 'law_update_articles'),
(308986, 29469, 'PostTitle', 'Procurement in the Education Sector in the Middle East'),
(308987, 29469, 'PostStatus', 'publish'),
(308988, 29469, 'PostDate', '2018-09-04 07:40:35'),
(308989, 29469, 'PostUrl', 'https://www.tamimi.com/law-update-articles/procurement-in-the-education-sector-in-the-middle-east/'),
(308990, 29469, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8196&amp;action=edit'),
(308991, 29469, 'ClientIP', '83.111.236.141'),
(308992, 29469, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(308993, 29469, 'CurrentUserID', '5'),
(308994, 29469, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(308995, 29469, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(308996, 29470, 'PostID', '8196'),
(308997, 29470, 'PostType', 'law_update_articles'),
(308998, 29470, 'PostTitle', 'Procurement in the Education Sector in the Middle East'),
(308999, 29470, 'PostStatus', 'publish'),
(309000, 29470, 'PostDate', '2018-09-04 07:40:35'),
(309001, 29470, 'PostUrl', 'https://www.tamimi.com/law-update-articles/procurement-in-the-education-sector-in-the-middle-east/'),
(309002, 29470, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8196&amp;action=edit'),
(309003, 29470, 'ClientIP', '83.111.236.141'),
(309004, 29470, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(309005, 29470, 'CurrentUserID', '5'),
(309006, 29470, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(309007, 29470, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(309008, 29471, 'Attempts', '1'),
(309009, 29471, 'Username', 'Website Visitor'),
(309010, 29471, 'Msg', 'times'),
(309011, 29471, 'URL', 'https://www.tamimi.com/wp-content/uploads/2018/01/Samarth-Chaddha.jpg'),
(309012, 29471, 'ClientIP', '108.174.8.16'),
(309013, 29471, 'UserAgent', 'LinkedInBot/1.0 (compatible; Mozilla/5.0; Jakarta Commons-HttpClient/4.3 +http://www.linkedin.com)'),
(309014, 29472, 'PostID', '8196'),
(309015, 29472, 'PostType', 'law_update_articles'),
(309016, 29472, 'PostTitle', 'Procurement in the Education Sector in the Middle East'),
(309017, 29472, 'PostStatus', 'publish'),
(309018, 29472, 'PostDate', '2018-09-04 07:40:35'),
(309019, 29472, 'PostUrl', 'https://www.tamimi.com/law-update-articles/procurement-in-the-education-sector-in-the-middle-east/'),
(309020, 29472, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8196&amp;action=edit'),
(309021, 29472, 'ClientIP', '83.111.236.141'),
(309022, 29472, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(309023, 29472, 'CurrentUserID', '5'),
(309024, 29472, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(309025, 29472, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(309026, 29473, 'PostID', '8196'),
(309027, 29473, 'PostTitle', 'Procurement in the Education Sector in the Middle East'),
(309028, 29473, 'PostStatus', 'publish'),
(309029, 29473, 'PostType', 'law_update_articles'),
(309030, 29473, 'PostDate', '2018-09-04 07:40:35'),
(309031, 29473, 'PostUrl', 'https://www.tamimi.com/law-update-articles/procurement-in-the-education-sector-in-the-middle-east/'),
(309032, 29473, 'MetaID', '226652'),
(309033, 29473, 'MetaKey', 'content'),
(309034, 29473, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8245 size-full\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_17_Image_0003.jpg\" alt=\"\" width=\"570\" height=\"289\" />The education sector in the Middle East has often been widely perceived as a lucrative investment opportunity for developers looking to expand their portfolio of investments. By way of example, the UAE has one of the most buoyant private school markets in the world, with consistently high levels of occupancy coupled with year-on-year growth in demand, in large part as a result of the UAE’s growing expatriate population. It has been estimated that Dubai will need 134 new schools to be constructed over the course of the next 10 years in order to accommodate the estimated 200,000 pupils that will need seats by the 2027/2028 school year. It is a similar story in other parts of the Middle East. This will therefore require a concerted effort by developers, contractors, funders and the relevant regulatory bodies in order to facilitate the construction of such developments, in a manner that meets the every-increasing demand within the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The costs associated with investing in school infrastructure are significant. There are various reasons for this, one of which is the potential complexity of issues faced when embarking on such projects, such as the need to integrate the programme of works around the day-to-day activities of the school system (applicable for example where refurbishment works are being undertaken on an existing school).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The procurement route adopted on any construction and engineering project is one of the key considerations for developers, which will allow them to assess whether the relevant works and moreover the project as a whole can complete on time, be of the required quality and be within budget. Another important consideration is ensuring that the tender process allows for a close examination of contractors’ experience within the sector. Given the specialist nature of school construction projects, developers should not only examine pricing but also consider whether the bidding contractor has sufficient knowledge and experience of working on such specialist projects in the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A number of procurement options are available to developers operating within the education sector when procuring works and services from third parties. Each of these has its own advantages and disadvantages. In this article we discuss the following key procurement routes and explain the main advantages and disadvantages associated with each:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Traditional contracting;</li>\r\n 	<li dir=\"LTR\">Design and build contracting; and</li>\r\n 	<li dir=\"LTR\">Public-private partnerships.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, we will briefly examine the important role that a well drafted operation and maintenance agreement has in addressing the ongoing operational demands of a school, following completion of a project.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It should be noted that in addition to procuring works directly, an alternative option for developers is to enter into a ‘build to suit’ arrangement with educational facility operators. This essentially involves land owners, ground lease owners or developers undertaking the construction of an educational facility provided that they have a long term tenant (whether a school, educational institution or an operator) who wishes to enter into a long term lease of the facility. Although beyond the scope of this article, build to suit education projects are an important consideration and examined in greater detail in the article entitled \"<a href=\"https://www.tamimi.com/law-update-articles/build-to-suit-education-projects/\">Build to Suit Education Projects</a>\" authored by Partner and Head of Real Estate, Jeremy Scott, in this month’s edition of Law Update.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8272 size-large\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_549215536-690x1024.jpg\" alt=\"\" width=\"640\" height=\"950\" />Traditional Contracting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">This is probably one of the most often encountered forms of procurement adopted by developers in the education sector. Essentially the developer (also known as the \"employer\") will engage a professional team of consultants (usually an architect, mechanical and electrical engineer, civil and structural engineer and perhaps other specialist consultants) to prepare designs and specifications for the works that are to then be constructed by a building contractor. Such designers typically have a proven track record and experience in operating in the education sector and this provides comfort that the designs will be well suited for an education facility and will be readily accepted by the relevant authorities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contractor will be engaged separately by the developer under a construction contract and will be responsible for engaging sub-contractors to the extent required in order to allow them to complete the required works in accordance with the approved designs.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The building contract will only be responsible for the construction of the works (as design responsibility remains vested in the design team). Given that school projects may concern the expansion of existing facilities (as opposed to ‘green field’ projects), it is likely that the construction works will need to be carried out in accordance with a detailed programme to ensure that interference and disruption during school time is minimised. Additionally, the construction contract needs to contain a specific procedure for the rectification of defects, again to ensure that construction works do not encroach on the day-to-day running of the school.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of the advantages of traditional contracting include that the employer retains control over the design of the project and therefore can monitor quality and ensure their requirements in this regard are met. This is a potentially telling advantage on account of the planning and design nuances that are applicable to school designs. There is, however, a greater risk of the building contractor being delayed and of them incurring cost overruns due to the additional oversight and involvement that the employer will have in the project. Delays can be particularly harmful as they may result in the school not being completed in time for an academic year and this could result in significant losses being incurred. In addition, there will be multiple points of responsibility, which can make the employer pursuing a claim in respect of defects that arise, more complex, costly and time consuming.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Design and Build Contracting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The design and build procurement route generally involves the design of the works being undertaken entirely by the building contractor/its professional team of design consultants. Alternatively the initial design will be developed by the employer/its professional team of design consultants, subsequent to which responsibility for these designs will transfer to the contractor by way of novation of the design consultant appointments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Here the building contractor takes single point responsibility and thus is liable to the employer for both the design and construction of the works.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The advantages associated with design and build contracting include that it offers greater certainty in terms of time for completion and cost, as such projects are usually for a defined duration and priced on a fixed, lump sum basis (this is of course provided that the employer does not make any changes to the required scope of works). As noted above, delays can be very damaging in the context of a school project so developers (and their funders) typically address this issue in detail in the construction contract. For example, the building contractor may be entitled to an early completion bonus while the employer will often insist on the ability to instruct the building contractor to accelerate the works if they fall behind schedule. Although delay damages are a ‘last resort’, thought should be given to the quantum of delay damages so that they correspond (as far as possible) to the loss that the employer will suffer arising out of a delay (i.e. if the facility is not ready for the start of the school term).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The presence of single point responsibility makes it more straightforward for the employer and other parties with recourse to the building contractor, to seek redress should any design defects or workmanship issues arise, as opposed to having to pursue the relevant design consultants individually.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Disadvantages of this procurement route include that there may be added scope for delays to the project due to the changes that might be requested by the employer during the construction of the project or otherwise as a consequence of a delay in novating the design consultants to the building contractor. Such changes can also impact on costs. The employer also loses a degree of control over the project and therefore is less able to maintain oversight over quality, when compared to the traditional procurement route. This can have a significant impact in the context of an educational establishment on account of the typically prescriptive Employer’s Requirements. It is therefore important that the design and build contractor is closely supervised.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Public- Private Partnerships</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Public Private Partnerships (or \"PPPs\") structures have been used to procure schools, including in the United Kingdom and Australia but are less common in the region. In the traditional sense, the public authority would engage a private entity (usually in the form of a Special Purpose Vehicle) to design, construct, operate and maintain a school for a term of usually between 15 to 25 years, in exchange for which usage payments will be made to the private entity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of the recent PPP Law in Dubai in addition to the proposed enactment of the draft Private Sector Participation Law (which will follow the previously introduced Privatization Projects Manual) in Saudi Arabia, underlines the growing emphasis being placed on PPPs by governments in the region and it may help facilitate the gradual adoption of this approach within the region. For the time being however, ‘quasi’ PPP structures are more likely to be adopted, whereby a private entity may grant a long term concession to a specialist school to design, construct, operate and maintain an educational facility.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important advantage of PPPs is that it allows the procuring entity to leverage efficiencies and expertise in the private sector in order to enable it to attain its development objectives. For the private sector, PPPs can assist in helping to secure the third party funding necessary to enable the project to proceed, due primarily to the involvement of a public authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Disadvantages of this method of procurement include that the procurement and tendering process can be lengthy and expensive, when compared to the traditional procurement process.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-8246 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_18_Image_0001.jpg\" alt=\"\" width=\"316\" height=\"262\" /></h3>\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"The education sector in the Middle East has often been widely perceived as a lucrative investment opportunity for developers looking to expand their portfolio of investments…\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operation and Maintenance Agreement</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Once a school has been constructed, in order for it to remain in good working order and attractive to the market, it must be properly operated and maintained. This is usually undertaken by the developer appointing an operation and maintenance contractor (\"O&amp;M Contractor\") under an operation and maintenance agreement (\"O&amp;M Agreement\", otherwise also known as a \"facilities management contract\"). Some of the more important provisions of an O&amp;M agreement, that the parties should ensure are adequately addressed, include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Having a clear and detailed scope of works specifying exactly what is required of the O&amp;M Contractor in addition to the key performance indicators (or \"KPIs\" against which their performance will be measured). These KPIs should be SMART (Specific, Measurable, Achievable, Relevant and Time Based);</li>\r\n 	<li dir=\"LTR\">A warranty that the O&amp;M Contractor has carried out all reasonable investigations and inspections of the school facility and that the asset is capable of being managed to the standards prescribed by the O&amp;M Agreement. This will reduce the risk of the O&amp;M Contractor seeking to blame the building contractor for any deficiencies in the services they perform;</li>\r\n 	<li dir=\"LTR\">From a practical perspective, where the school is being newly constructed, it may be a good idea to have the O&amp;M Contractor inspect the asset prior to Take Over and to attend any tests on completion under the construction contract. The contractor may also be required to provide the O&amp;M Contractor with training for the operation and maintenance of the school. This will need to be addressed at the earliest stages of a project so that it is possible for the construction contract to include clauses to address issues of this nature;</li>\r\n 	<li dir=\"LTR\">Penalties where the O&amp;M Contractor does not achieve the KPIs or for example, where there is an interruption to the operations of the school during school and non-school hours; and</li>\r\n 	<li dir=\"LTR\">Termination rights which may be linked to a breach of the KPI regime.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">There is of course a suite of other important considerations that the parties should be mindful of when negotiating an O&amp;M Agreement, such as insurance, force majeure, performance security and payment. In any event the contract should be closely examined to ensure it is tailored to the specific commercial arrangement between the parties, in addition to the laws of the jurisdiction or Emirate which will govern the contractual relationship.</p>\r\n<em>Al Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/practice/construction-infrastructure/\">Construction and Infrastructure</a> team regularly advises on all elements of the construction procurement process. For further information please contact <a href=\"https://www.tamimi.com/lawyer/euan-lloyd/\">Euan Lloyd</a> (<a href=\"mailto:E.Lloyd@tamimi.com\">E.Lloyd@tamimi.com</a>).</em>'),
(309035, 29473, 'MetaValueOld', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8245 size-full\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_17_Image_0003.jpg\" alt=\"\" width=\"570\" height=\"289\" />The education sector in the Middle East has often been widely perceived as a lucrative investment opportunity for developers looking to expand their portfolio of investments. By way of example, the UAE has one of the most buoyant private school markets in the world, with consistently high levels of occupancy coupled with year-on-year growth in demand, in large part as a result of the UAE’s growing expatriate population. It has been estimated that Dubai will need 134 new schools to be constructed over the course of the next 10 years in order to accommodate the estimated 200,000 pupils that will need seats by the 2027/2028 school year. It is a similar story in other parts of the Middle East. This will therefore require a concerted effort by developers, contractors, funders and the relevant regulatory bodies in order to facilitate the construction of such developments, in a manner that meets the every-increasing demand within the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The costs associated with investing in school infrastructure are significant. There are various reasons for this, one of which is the potential complexity of issues faced when embarking on such projects, such as the need to integrate the programme of works around the day-to-day activities of the school system (applicable for example where refurbishment works are being undertaken on an existing school).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The procurement route adopted on any construction and engineering project is one of the key considerations for developers, which will allow them to assess whether the relevant works and moreover the project as a whole can complete on time, be of the required quality and be within budget. Another important consideration is ensuring that the tender process allows for a close examination of contractors’ experience within the sector. Given the specialist nature of school construction projects, developers should not only examine pricing but also consider whether the bidding contractor has sufficient knowledge and experience of working on such specialist projects in the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A number of procurement options are available to developers operating within the education sector when procuring works and services from third parties. Each of these has its own advantages and disadvantages. In this article we discuss the following key procurement routes and explain the main advantages and disadvantages associated with each:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Traditional contracting;</li>\r\n 	<li dir=\"LTR\">Design and build contracting; and</li>\r\n 	<li dir=\"LTR\">Public-private partnerships.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, we will briefly examine the important role that a well drafted operation and maintenance agreement has in addressing the ongoing operational demands of a school, following completion of a project.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It should be noted that in addition to procuring works directly, an alternative option for developers is to enter into a ‘build to suit’ arrangement with educational facility operators. This essentially involves land owners, ground lease owners or developers undertaking the construction of an educational facility provided that they have a long term tenant (whether a school, educational institution or an operator) who wishes to enter into a long term lease of the facility. Although beyond the scope of this article, build to suit education projects are an important consideration and examined in greater detail in the article entitled \"<a href=\"https://www.tamimi.com/law-update-articles/build-to-suit-education-projects/\">Build to Suit Education Projects</a>\" authored by Partner and Head of Real Estate, Jeremy Scott, in this month’s edition of Law Update.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Traditional Contracting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">This is probably one of the most often encountered forms of procurement adopted by developers in the education sector. Essentially the developer (also known as the \"employer\") will engage a professional team of consultants (usually an architect, mechanical and electrical engineer, civil and structural engineer and perhaps other specialist consultants) to prepare designs and specifications for the works that are to then be constructed by a building contractor. Such designers typically have a proven track record and experience in operating in the education sector and this provides comfort that the designs will be well suited for an education facility and will be readily accepted by the relevant authorities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contractor will be engaged separately by the developer under a construction contract and will be responsible for engaging sub-contractors to the extent required in order to allow them to complete the required works in accordance with the approved designs.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The building contract will only be responsible for the construction of the works (as design responsibility remains vested in the design team). Given that school projects may concern the expansion of existing facilities (as opposed to ‘green field’ projects), it is likely that the construction works will need to be carried out in accordance with a detailed programme to ensure that interference and disruption during school time is minimised. Additionally, the construction contract needs to contain a specific procedure for the rectification of defects, again to ensure that construction works do not encroach on the day-to-day running of the school.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of the advantages of traditional contracting include that the employer retains control over the design of the project and therefore can monitor quality and ensure their requirements in this regard are met. This is a potentially telling advantage on account of the planning and design nuances that are applicable to school designs. There is, however, a greater risk of the building contractor being delayed and of them incurring cost overruns due to the additional oversight and involvement that the employer will have in the project. Delays can be particularly harmful as they may result in the school not being completed in time for an academic year and this could result in significant losses being incurred. In addition, there will be multiple points of responsibility, which can make the employer pursuing a claim in respect of defects that arise, more complex, costly and time consuming.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Design and Build Contracting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The design and build procurement route generally involves the design of the works being undertaken entirely by the building contractor/its professional team of design consultants. Alternatively the initial design will be developed by the employer/its professional team of design consultants, subsequent to which responsibility for these designs will transfer to the contractor by way of novation of the design consultant appointments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Here the building contractor takes single point responsibility and thus is liable to the employer for both the design and construction of the works.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The advantages associated with design and build contracting include that it offers greater certainty in terms of time for completion and cost, as such projects are usually for a defined duration and priced on a fixed, lump sum basis (this is of course provided that the employer does not make any changes to the required scope of works). As noted above, delays can be very damaging in the context of a school project so developers (and their funders) typically address this issue in detail in the construction contract. For example, the building contractor may be entitled to an early completion bonus while the employer will often insist on the ability to instruct the building contractor to accelerate the works if they fall behind schedule. Although delay damages are a ‘last resort’, thought should be given to the quantum of delay damages so that they correspond (as far as possible) to the loss that the employer will suffer arising out of a delay (i.e. if the facility is not ready for the start of the school term).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The presence of single point responsibility makes it more straightforward for the employer and other parties with recourse to the building contractor, to seek redress should any design defects or workmanship issues arise, as opposed to having to pursue the relevant design consultants individually.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Disadvantages of this procurement route include that there may be added scope for delays to the project due to the changes that might be requested by the employer during the construction of the project or otherwise as a consequence of a delay in novating the design consultants to the building contractor. Such changes can also impact on costs. The employer also loses a degree of control over the project and therefore is less able to maintain oversight over quality, when compared to the traditional procurement route. This can have a significant impact in the context of an educational establishment on account of the typically prescriptive Employer’s Requirements. It is therefore important that the design and build contractor is closely supervised.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-8246 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_18_Image_0001.jpg\" alt=\"\" width=\"316\" height=\"262\" />Public- Private Partnerships</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Public Private Partnerships (or \"PPPs\") structures have been used to procure schools, including in the United Kingdom and Australia but are less common in the region. In the traditional sense, the public authority would engage a private entity (usually in the form of a Special Purpose Vehicle) to design, construct, operate and maintain a school for a term of usually between 15 to 25 years, in exchange for which usage payments will be made to the private entity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of the recent PPP Law in Dubai in addition to the proposed enactment of the draft Private Sector Participation Law (which will follow the previously introduced Privatization Projects Manual) in Saudi Arabia, underlines the growing emphasis being placed on PPPs by governments in the region and it may help facilitate the gradual adoption of this approach within the region. For the time being however, ‘quasi’ PPP structures are more likely to be adopted, whereby a private entity may grant a long term concession to a specialist school to design, construct, operate and maintain an educational facility.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important advantage of PPPs is that it allows the procuring entity to leverage efficiencies and expertise in the private sector in order to enable it to attain its development objectives. For the private sector, PPPs can assist in helping to secure the third party funding necessary to enable the project to proceed, due primarily to the involvement of a public authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Disadvantages of this method of procurement include that the procurement and tendering process can be lengthy and expensive, when compared to the traditional procurement process.</p>\r\n&nbsp;\r\n<h2></h2>\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"The education sector in the Middle East has often been widely perceived as a lucrative investment opportunity for developers looking to expand their portfolio of investments…\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operation and Maintenance Agreement</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Once a school has been constructed, in order for it to remain in good working order and attractive to the market, it must be properly operated and maintained. This is usually undertaken by the developer appointing an operation and maintenance contractor (\"O&amp;M Contractor\") under an operation and maintenance agreement (\"O&amp;M Agreement\", otherwise also known as a \"facilities management contract\"). Some of the more important provisions of an O&amp;M agreement, that the parties should ensure are adequately addressed, include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Having a clear and detailed scope of works specifying exactly what is required of the O&amp;M Contractor in addition to the key performance indicators (or \"KPIs\" against which their performance will be measured). These KPIs should be SMART (Specific, Measurable, Achievable, Relevant and Time Based);</li>\r\n 	<li dir=\"LTR\">A warranty that the O&amp;M Contractor has carried out all reasonable investigations and inspections of the school facility and that the asset is capable of being managed to the standards prescribed by the O&amp;M Agreement. This will reduce the risk of the O&amp;M Contractor seeking to blame the building contractor for any deficiencies in the services they perform;</li>\r\n 	<li dir=\"LTR\">From a practical perspective, where the school is being newly constructed, it may be a good idea to have the O&amp;M Contractor inspect the asset prior to Take Over and to attend any tests on completion under the construction contract. The contractor may also be required to provide the O&amp;M Contractor with training for the operation and maintenance of the school. This will need to be addressed at the earliest stages of a project so that it is possible for the construction contract to include clauses to address issues of this nature;</li>\r\n 	<li dir=\"LTR\">Penalties where the O&amp;M Contractor does not achieve the KPIs or for example, where there is an interruption to the operations of the school during school and non-school hours; and</li>\r\n 	<li dir=\"LTR\">Termination rights which may be linked to a breach of the KPI regime.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">There is of course a suite of other important considerations that the parties should be mindful of when negotiating an O&amp;M Agreement, such as insurance, force majeure, performance security and payment. In any event the contract should be closely examined to ensure it is tailored to the specific commercial arrangement between the parties, in addition to the laws of the jurisdiction or Emirate which will govern the contractual relationship.</p>\r\n<em>Al Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/practice/construction-infrastructure/\">Construction and Infrastructure</a> team regularly advises on all elements of the construction procurement process. For further information please contact <a href=\"https://www.tamimi.com/lawyer/euan-lloyd/\">Euan Lloyd</a> (<a href=\"mailto:E.Lloyd@tamimi.com\">E.Lloyd@tamimi.com</a>).</em>'),
(309036, 29473, 'MetaLink', 'content'),
(309037, 29473, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8196&amp;action=edit');
INSERT INTO `tm_wsal_metadata` (`id`, `occurrence_id`, `name`, `value`) VALUES
(309038, 29473, 'ReportText', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8245 size-full\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_17_Image_0003.jpg\" alt=\"\" width=\"570\" height=\"289\" />The education sector in the Middle East has often been widely perceived as a lucrative investment opportunity for developers looking to expand their portfolio of investments. By way of example, the UAE has one of the most buoyant private school markets in the world, with consistently high levels of occupancy coupled with year-on-year growth in demand, in large part as a result of the UAE’s growing expatriate population. It has been estimated that Dubai will need 134 new schools to be constructed over the course of the next 10 years in order to accommodate the estimated 200,000 pupils that will need seats by the 2027/2028 school year. It is a similar story in other parts of the Middle East. This will therefore require a concerted effort by developers, contractors, funders and the relevant regulatory bodies in order to facilitate the construction of such developments, in a manner that meets the every-increasing demand within the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The costs associated with investing in school infrastructure are significant. There are various reasons for this, one of which is the potential complexity of issues faced when embarking on such projects, such as the need to integrate the programme of works around the day-to-day activities of the school system (applicable for example where refurbishment works are being undertaken on an existing school).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The procurement route adopted on any construction and engineering project is one of the key considerations for developers, which will allow them to assess whether the relevant works and moreover the project as a whole can complete on time, be of the required quality and be within budget. Another important consideration is ensuring that the tender process allows for a close examination of contractors’ experience within the sector. Given the specialist nature of school construction projects, developers should not only examine pricing but also consider whether the bidding contractor has sufficient knowledge and experience of working on such specialist projects in the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A number of procurement options are available to developers operating within the education sector when procuring works and services from third parties. Each of these has its own advantages and disadvantages. In this article we discuss the following key procurement routes and explain the main advantages and disadvantages associated with each:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Traditional contracting;</li>\r\n 	<li dir=\"LTR\">Design and build contracting; and</li>\r\n 	<li dir=\"LTR\">Public-private partnerships.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, we will briefly examine the important role that a well drafted operation and maintenance agreement has in addressing the ongoing operational demands of a school, following completion of a project.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It should be noted that in addition to procuring works directly, an alternative option for developers is to enter into a ‘build to suit’ arrangement with educational facility operators. This essentially involves land owners, ground lease owners or developers undertaking the construction of an educational facility provided that they have a long term tenant (whether a school, educational institution or an operator) who wishes to enter into a long term lease of the facility. Although beyond the scope of this article, build to suit education projects are an important consideration and examined in greater detail in the article entitled \"<a href=\"https://www.tamimi.com/law-update-articles/build-to-suit-education-projects/\">Build to Suit Education Projects</a>\" authored by Partner and Head of Real Estate, Jeremy Scott, in this month’s edition of Law Update.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Traditional Contracting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">This is probably one of the most often encountered forms of procurement adopted by developers in the education sector. Essentially the developer (also known as the \"employer\") will engage a professional team of consultants (usually an architect, mechanical and electrical engineer, civil and structural engineer and perhaps other specialist consultants) to prepare designs and specifications for the works that are to then be constructed by a building contractor. Such designers typically have a proven track record and experience in operating in the education sector and this provides comfort that the designs will be well suited for an education facility and will be readily accepted by the relevant authorities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contractor will be engaged separately by the developer under a construction contract and will be responsible for engaging sub-contractors to the extent required in order to allow them to complete the required works in accordance with the approved designs.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The building contract will only be responsible for the construction of the works (as design responsibility remains vested in the design team). Given that school projects may concern the expansion of existing facilities (as opposed to ‘green field’ projects), it is likely that the construction works will need to be carried out in accordance with a detailed programme to ensure that interference and disruption during school time is minimised. Additionally, the construction contract needs to contain a specific procedure for the rectification of defects, again to ensure that construction works do not encroach on the day-to-day running of the school.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of the advantages of traditional contracting include that the employer retains control over the design of the project and therefore can monitor quality and ensure their requirements in this regard are met. This is a potentially telling advantage on account of the planning and design nuances that are applicable to school designs. There is, however, a greater risk of the building contractor being delayed and of them incurring cost overruns due to the additional oversight and involvement that the employer will have in the project. Delays can be particularly harmful as they may result in the school not being completed in time for an academic year and this could result in significant losses being incurred. In addition, there will be multiple points of responsibility, which can make the employer pursuing a claim in respect of defects that arise, more complex, costly and time consuming.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Design and Build Contracting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The design and build procurement route generally involves the design of the works being undertaken entirely by the building contractor/its professional team of design consultants. Alternatively the initial design will be developed by the employer/its professional team of design consultants, subsequent to which responsibility for these designs will transfer to the contractor by way of novation of the design consultant appointments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Here the building contractor takes single point responsibility and thus is liable to the employer for both the design and construction of the works.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The advantages associated with design and build contracting include that it offers greater certainty in terms of time for completion and cost, as such projects are usually for a defined duration and priced on a fixed, lump sum basis (this is of course provided that the employer does not make any changes to the required scope of works). As noted above, delays can be very damaging in the context of a school project so developers (and their funders) typically address this issue in detail in the construction contract. For example, the building contractor may be entitled to an early completion bonus while the employer will often insist on the ability to instruct the building contractor to accelerate the works if they fall behind schedule. Although delay damages are a ‘last resort’, thought should be given to the quantum of delay damages so that they correspond (as far as possible) to the loss that the employer will suffer arising out of a delay (i.e. if the facility is not ready for the start of the school term).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The presence of single point responsibility makes it more straightforward for the employer and other parties with recourse to the building contractor, to seek redress should any design defects or workmanship issues arise, as opposed to having to pursue the relevant design consultants individually.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Disadvantages of this procurement route include that there may be added scope for delays to the project due to the changes that might be requested by the employer during the construction of the project or otherwise as a consequence of a delay in novating the design consultants to the building contractor. Such changes can also impact on costs. The employer also loses a degree of control over the project and therefore is less able to maintain oversight over quality, when compared to the traditional procurement route. This can have a significant impact in the context of an educational establishment on account of the typically prescriptive Employer’s Requirements. It is therefore important that the design and build contractor is closely supervised.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-8246 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_18_Image_0001.jpg\" alt=\"\" width=\"316\" height=\"262\" />Public- Private Partnerships</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Public Private Partnerships (or \"PPPs\") structures have been used to procure schools, including in the United Kingdom and Australia but are less common in the region. In the traditional sense, the public authority would engage a private entity (usually in the form of a Special Purpose Vehicle) to design, construct, operate and maintain a school for a term of usually between 15 to 25 years, in exchange for which usage payments will be made to the private entity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of the recent PPP Law in Dubai in addition to the proposed enactment of the draft Private Sector Participation Law (which will follow the previously introduced Privatization Projects Manual) in Saudi Arabia, underlines the growing emphasis being placed on PPPs by governments in the region and it may help facilitate the gradual adoption of this approach within the region. For the time being however, ‘quasi’ PPP structures are more likely to be adopted, whereby a private entity may grant a long term concession to a specialist school to design, construct, operate and maintain an educational facility.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important advantage of PPPs is that it allows the procuring entity to leverage efficiencies and expertise in the private sector in order to enable it to attain its development objectives. For the private sector, PPPs can assist in helping to secure the third party funding necessary to enable the project to proceed, due primarily to the involvement of a public authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Disadvantages of this method of procurement include that the procurement and tendering process can be lengthy and expensive, when compared to the traditional procurement process.</p>\r\n&nbsp;\r\n<h2></h2>\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"The education sector in the Middle East has often been widely perceived as a lucrative investment opportunity for developers looking to expand their portfolio of investments…\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operation and Maintenance Agreement</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Once a school has been constructed, in order for it to remain in good working order and attractive to the market, it must be properly operated and maintained. This is usually undertaken by the developer appointing an operation and maintenance contractor (\"O&amp;M Contractor\") under an operation and maintenance agreement (\"O&amp;M Agreement\", otherwise also known as a \"facilities management contract\"). Some of the more important provisions of an O&amp;M agreement, that the parties should ensure are adequately addressed, include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Having a clear and detailed scope of works specifying exactly what is required of the O&amp;M Contractor in addition to the key performance indicators (or \"KPIs\" against which their performance will be measured). These KPIs should be SMART (Specific, Measurable, Achievable, Relevant and Time Based);</li>\r\n 	<li dir=\"LTR\">A warranty that the O&amp;M Contractor has carried out all reasonable investigations and inspections of the school facility and that the asset is capable of being managed to the standards prescribed by the O&amp;M Agreement. This will reduce the risk of the O&amp;M Contractor seeking to blame the building contractor for any deficiencies in the services they perform;</li>\r\n 	<li dir=\"LTR\">From a practical perspective, where the school is being newly constructed, it may be a good idea to have the O&amp;M Contractor inspect the asset prior to Take Over and to attend any tests on completion under the construction contract. The contractor may also be required to provide the O&amp;M Contractor with training for the operation and maintenance of the school. This will need to be addressed at the earliest stages of a project so that it is possible for the construction contract to include clauses to address issues of this nature;</li>\r\n 	<li dir=\"LTR\">Penalties where the O&amp;M Contractor does not achieve the KPIs or for example, where there is an interruption to the operations of the school during school and non-school hours; and</li>\r\n 	<li dir=\"LTR\">Termination rights which may be linked to a breach of the KPI regime.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">There is of course a suite of other important considerations that the parties should be mindful of when negotiating an O&amp;M Agreement, such as insurance, force majeure, performance security and payment. In any event the contract should be closely examined to ensure it is tailored to the specific commercial arrangement between the parties, in addition to the laws of the jurisdiction or Emirate which will govern the contractual relationship.</p>\r\n<em>Al Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/practice/construction-infrastructure/\">Construction and Infrastructure</a> team regularly advises on all elements of the construction procurement process. For further information please contact <a href=\"https://www.tamimi.com/lawyer/euan-lloyd/\">Euan Lloyd</a> (<a href=\"mailto:E.Lloyd@tamimi.com\">E.Lloyd@tamimi.com</a>).</em>|<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8245 size-full\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_17_Image_0003.jpg\" alt=\"\" width=\"570\" height=\"289\" />The education sector in the Middle East has often been widely perceived as a lucrative investment opportunity for developers looking to expand their portfolio of investments. By way of example, the UAE has one of the most buoyant private school markets in the world, with consistently high levels of occupancy coupled with year-on-year growth in demand, in large part as a result of the UAE’s growing expatriate population. It has been estimated that Dubai will need 134 new schools to be constructed over the course of the next 10 years in order to accommodate the estimated 200,000 pupils that will need seats by the 2027/2028 school year. It is a similar story in other parts of the Middle East. This will therefore require a concerted effort by developers, contractors, funders and the relevant regulatory bodies in order to facilitate the construction of such developments, in a manner that meets the every-increasing demand within the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The costs associated with investing in school infrastructure are significant. There are various reasons for this, one of which is the potential complexity of issues faced when embarking on such projects, such as the need to integrate the programme of works around the day-to-day activities of the school system (applicable for example where refurbishment works are being undertaken on an existing school).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The procurement route adopted on any construction and engineering project is one of the key considerations for developers, which will allow them to assess whether the relevant works and moreover the project as a whole can complete on time, be of the required quality and be within budget. Another important consideration is ensuring that the tender process allows for a close examination of contractors’ experience within the sector. Given the specialist nature of school construction projects, developers should not only examine pricing but also consider whether the bidding contractor has sufficient knowledge and experience of working on such specialist projects in the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A number of procurement options are available to developers operating within the education sector when procuring works and services from third parties. Each of these has its own advantages and disadvantages. In this article we discuss the following key procurement routes and explain the main advantages and disadvantages associated with each:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Traditional contracting;</li>\r\n 	<li dir=\"LTR\">Design and build contracting; and</li>\r\n 	<li dir=\"LTR\">Public-private partnerships.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, we will briefly examine the important role that a well drafted operation and maintenance agreement has in addressing the ongoing operational demands of a school, following completion of a project.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It should be noted that in addition to procuring works directly, an alternative option for developers is to enter into a ‘build to suit’ arrangement with educational facility operators. This essentially involves land owners, ground lease owners or developers undertaking the construction of an educational facility provided that they have a long term tenant (whether a school, educational institution or an operator) who wishes to enter into a long term lease of the facility. Although beyond the scope of this article, build to suit education projects are an important consideration and examined in greater detail in the article entitled \"<a href=\"https://www.tamimi.com/law-update-articles/build-to-suit-education-projects/\">Build to Suit Education Projects</a>\" authored by Partner and Head of Real Estate, Jeremy Scott, in this month’s edition of Law Update.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8272 size-large\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_549215536-690x1024.jpg\" alt=\"\" width=\"640\" height=\"950\" />Traditional Contracting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">This is probably one of the most often encountered forms of procurement adopted by developers in the education sector. Essentially the developer (also known as the \"employer\") will engage a professional team of consultants (usually an architect, mechanical and electrical engineer, civil and structural engineer and perhaps other specialist consultants) to prepare designs and specifications for the works that are to then be constructed by a building contractor. Such designers typically have a proven track record and experience in operating in the education sector and this provides comfort that the designs will be well suited for an education facility and will be readily accepted by the relevant authorities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contractor will be engaged separately by the developer under a construction contract and will be responsible for engaging sub-contractors to the extent required in order to allow them to complete the required works in accordance with the approved designs.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The building contract will only be responsible for the construction of the works (as design responsibility remains vested in the design team). Given that school projects may concern the expansion of existing facilities (as opposed to ‘green field’ projects), it is likely that the construction works will need to be carried out in accordance with a detailed programme to ensure that interference and disruption during school time is minimised. Additionally, the construction contract needs to contain a specific procedure for the rectification of defects, again to ensure that construction works do not encroach on the day-to-day running of the school.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of the advantages of traditional contracting include that the employer retains control over the design of the project and therefore can monitor quality and ensure their requirements in this regard are met. This is a potentially telling advantage on account of the planning and design nuances that are applicable to school designs. There is, however, a greater risk of the building contractor being delayed and of them incurring cost overruns due to the additional oversight and involvement that the employer will have in the project. Delays can be particularly harmful as they may result in the school not being completed in time for an academic year and this could result in significant losses being incurred. In addition, there will be multiple points of responsibility, which can make the employer pursuing a claim in respect of defects that arise, more complex, costly and time consuming.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Design and Build Contracting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The design and build procurement route generally involves the design of the works being undertaken entirely by the building contractor/its professional team of design consultants. Alternatively the initial design will be developed by the employer/its professional team of design consultants, subsequent to which responsibility for these designs will transfer to the contractor by way of novation of the design consultant appointments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Here the building contractor takes single point responsibility and thus is liable to the employer for both the design and construction of the works.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The advantages associated with design and build contracting include that it offers greater certainty in terms of time for completion and cost, as such projects are usually for a defined duration and priced on a fixed, lump sum basis (this is of course provided that the employer does not make any changes to the required scope of works). As noted above, delays can be very damaging in the context of a school project so developers (and their funders) typically address this issue in detail in the construction contract. For example, the building contractor may be entitled to an early completion bonus while the employer will often insist on the ability to instruct the building contractor to accelerate the works if they fall behind schedule. Although delay damages are a ‘last resort’, thought should be given to the quantum of delay damages so that they correspond (as far as possible) to the loss that the employer will suffer arising out of a delay (i.e. if the facility is not ready for the start of the school term).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The presence of single point responsibility makes it more straightforward for the employer and other parties with recourse to the building contractor, to seek redress should any design defects or workmanship issues arise, as opposed to having to pursue the relevant design consultants individually.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Disadvantages of this procurement route include that there may be added scope for delays to the project due to the changes that might be requested by the employer during the construction of the project or otherwise as a consequence of a delay in novating the design consultants to the building contractor. Such changes can also impact on costs. The employer also loses a degree of control over the project and therefore is less able to maintain oversight over quality, when compared to the traditional procurement route. This can have a significant impact in the context of an educational establishment on account of the typically prescriptive Employer’s Requirements. It is therefore important that the design and build contractor is closely supervised.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Public- Private Partnerships</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Public Private Partnerships (or \"PPPs\") structures have been used to procure schools, including in the United Kingdom and Australia but are less common in the region. In the traditional sense, the public authority would engage a private entity (usually in the form of a Special Purpose Vehicle) to design, construct, operate and maintain a school for a term of usually between 15 to 25 years, in exchange for which usage payments will be made to the private entity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of the recent PPP Law in Dubai in addition to the proposed enactment of the draft Private Sector Participation Law (which will follow the previously introduced Privatization Projects Manual) in Saudi Arabia, underlines the growing emphasis being placed on PPPs by governments in the region and it may help facilitate the gradual adoption of this approach within the region. For the time being however, ‘quasi’ PPP structures are more likely to be adopted, whereby a private entity may grant a long term concession to a specialist school to design, construct, operate and maintain an educational facility.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important advantage of PPPs is that it allows the procuring entity to leverage efficiencies and expertise in the private sector in order to enable it to attain its development objectives. For the private sector, PPPs can assist in helping to secure the third party funding necessary to enable the project to proceed, due primarily to the involvement of a public authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Disadvantages of this method of procurement include that the procurement and tendering process can be lengthy and expensive, when compared to the traditional procurement process.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-8246 alignright\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_18_Image_0001.jpg\" alt=\"\" width=\"316\" height=\"262\" /></h3>\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"The education sector in the Middle East has often been widely perceived as a lucrative investment opportunity for developers looking to expand their portfolio of investments…\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operation and Maintenance Agreement</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Once a school has been constructed, in order for it to remain in good working order and attractive to the market, it must be properly operated and maintained. This is usually undertaken by the developer appointing an operation and maintenance contractor (\"O&amp;M Contractor\") under an operation and maintenance agreement (\"O&amp;M Agreement\", otherwise also known as a \"facilities management contract\"). Some of the more important provisions of an O&amp;M agreement, that the parties should ensure are adequately addressed, include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Having a clear and detailed scope of works specifying exactly what is required of the O&amp;M Contractor in addition to the key performance indicators (or \"KPIs\" against which their performance will be measured). These KPIs should be SMART (Specific, Measurable, Achievable, Relevant and Time Based);</li>\r\n 	<li dir=\"LTR\">A warranty that the O&amp;M Contractor has carried out all reasonable investigations and inspections of the school facility and that the asset is capable of being managed to the standards prescribed by the O&amp;M Agreement. This will reduce the risk of the O&amp;M Contractor seeking to blame the building contractor for any deficiencies in the services they perform;</li>\r\n 	<li dir=\"LTR\">From a practical perspective, where the school is being newly constructed, it may be a good idea to have the O&amp;M Contractor inspect the asset prior to Take Over and to attend any tests on completion under the construction contract. The contractor may also be required to provide the O&amp;M Contractor with training for the operation and maintenance of the school. This will need to be addressed at the earliest stages of a project so that it is possible for the construction contract to include clauses to address issues of this nature;</li>\r\n 	<li dir=\"LTR\">Penalties where the O&amp;M Contractor does not achieve the KPIs or for example, where there is an interruption to the operations of the school during school and non-school hours; and</li>\r\n 	<li dir=\"LTR\">Termination rights which may be linked to a breach of the KPI regime.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">There is of course a suite of other important considerations that the parties should be mindful of when negotiating an O&amp;M Agreement, such as insurance, force majeure, performance security and payment. In any event the contract should be closely examined to ensure it is tailored to the specific commercial arrangement between the parties, in addition to the laws of the jurisdiction or Emirate which will govern the contractual relationship.</p>\r\n<em>Al Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/practice/construction-infrastructure/\">Construction and Infrastructure</a> team regularly advises on all elements of the construction procurement process. For further information please contact <a href=\"https://www.tamimi.com/lawyer/euan-lloyd/\">Euan Lloyd</a> (<a href=\"mailto:E.Lloyd@tamimi.com\">E.Lloyd@tamimi.com</a>).</em>'),
(309039, 29473, 'ClientIP', '83.111.236.141'),
(309040, 29473, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(309041, 29473, 'CurrentUserID', '5'),
(309042, 29473, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(309043, 29473, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(309044, 29474, 'PostID', '8196'),
(309045, 29474, 'PostType', 'law_update_articles'),
(309046, 29474, 'PostTitle', 'Procurement in the Education Sector in the Middle East'),
(309047, 29474, 'PostStatus', 'publish'),
(309048, 29474, 'PostDate', '2018-09-04 07:40:35'),
(309049, 29474, 'PostUrl', 'https://www.tamimi.com/law-update-articles/procurement-in-the-education-sector-in-the-middle-east/'),
(309050, 29474, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8196&amp;action=edit'),
(309051, 29474, 'ClientIP', '83.111.236.141'),
(309052, 29474, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(309053, 29474, 'CurrentUserID', '5'),
(309054, 29474, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(309055, 29474, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(309056, 29475, 'PostID', '8196'),
(309057, 29475, 'PostType', 'law_update_articles'),
(309058, 29475, 'PostTitle', 'Procurement in the Education Sector in the Middle East'),
(309059, 29475, 'PostStatus', 'publish'),
(309060, 29475, 'PostDate', '2018-09-04 07:40:35'),
(309061, 29475, 'PostUrl', 'https://www.tamimi.com/law-update-articles/procurement-in-the-education-sector-in-the-middle-east/'),
(309062, 29475, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8196&amp;action=edit'),
(309063, 29475, 'ClientIP', '83.111.236.141'),
(309064, 29475, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(309065, 29475, 'CurrentUserID', '5'),
(309066, 29475, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(309067, 29475, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(309068, 29476, 'PostID', '8196'),
(309069, 29476, 'PostType', 'law_update_articles'),
(309070, 29476, 'PostTitle', 'Procurement in the Education Sector in the Middle East'),
(309071, 29476, 'PostStatus', 'publish'),
(309072, 29476, 'PostDate', '2018-09-04 07:40:35'),
(309073, 29476, 'PostUrl', 'https://www.tamimi.com/law-update-articles/procurement-in-the-education-sector-in-the-middle-east/'),
(309074, 29476, 'EditorLinkPost', 'https://www.tamimi.com/wp-admin/post.php?post=8196&amp;action=edit'),
(309075, 29476, 'ClientIP', '83.111.236.141'),
(309076, 29476, 'UserAgent', 'Mozilla/5.0 (Windows NT 10.0; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3497.81 Safari/537.36'),
(309077, 29476, 'CurrentUserID', '5'),
(309078, 29476, 'CurrentUserRoles', 'a:2:{i:0;s:13:\"administrator\";i:1;s:10:\"superadmin\";}'),
(309079, 29476, 'SessionID', '3eea04a09d4e3cdd1fe6c70377c574db138b0e23ebe7b0dd06abdc4b42051811'),
(309080, 29477, 'PostID', '8196'),
(309081, 29477, 'PostTitle', 'Procurement in the Education Sector in the Middle East'),
(309082, 29477, 'PostStatus', 'publish'),
(309083, 29477, 'PostType', 'law_update_articles'),
(309084, 29477, 'PostDate', '2018-09-04 07:40:35'),
(309085, 29477, 'PostUrl', 'https://www.tamimi.com/law-update-articles/procurement-in-the-education-sector-in-the-middle-east/'),
(309086, 29477, 'MetaID', '226652'),
(309087, 29477, 'MetaKey', 'content'),
(309088, 29477, 'MetaValueNew', '<p dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8245 size-full\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_17_Image_0003.jpg\" alt=\"\" width=\"570\" height=\"289\" />The education sector in the Middle East has often been widely perceived as a lucrative investment opportunity for developers looking to expand their portfolio of investments. By way of example, the UAE has one of the most buoyant private school markets in the world, with consistently high levels of occupancy coupled with year-on-year growth in demand, in large part as a result of the UAE’s growing expatriate population. It has been estimated that Dubai will need 134 new schools to be constructed over the course of the next 10 years in order to accommodate the estimated 200,000 pupils that will need seats by the 2027/2028 school year. It is a similar story in other parts of the Middle East. This will therefore require a concerted effort by developers, contractors, funders and the relevant regulatory bodies in order to facilitate the construction of such developments, in a manner that meets the every-increasing demand within the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The costs associated with investing in school infrastructure are significant. There are various reasons for this, one of which is the potential complexity of issues faced when embarking on such projects, such as the need to integrate the programme of works around the day-to-day activities of the school system (applicable for example where refurbishment works are being undertaken on an existing school).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The procurement route adopted on any construction and engineering project is one of the key considerations for developers, which will allow them to assess whether the relevant works and moreover the project as a whole can complete on time, be of the required quality and be within budget. Another important consideration is ensuring that the tender process allows for a close examination of contractors’ experience within the sector. Given the specialist nature of school construction projects, developers should not only examine pricing but also consider whether the bidding contractor has sufficient knowledge and experience of working on such specialist projects in the region.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">A number of procurement options are available to developers operating within the education sector when procuring works and services from third parties. Each of these has its own advantages and disadvantages. In this article we discuss the following key procurement routes and explain the main advantages and disadvantages associated with each:</p>\r\n\r\n<ol>\r\n 	<li dir=\"LTR\">Traditional contracting;</li>\r\n 	<li dir=\"LTR\">Design and build contracting; and</li>\r\n 	<li dir=\"LTR\">Public-private partnerships.</li>\r\n</ol>\r\n<p dir=\"LTR\" align=\"LEFT\">Finally, we will briefly examine the important role that a well drafted operation and maintenance agreement has in addressing the ongoing operational demands of a school, following completion of a project.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">It should be noted that in addition to procuring works directly, an alternative option for developers is to enter into a ‘build to suit’ arrangement with educational facility operators. This essentially involves land owners, ground lease owners or developers undertaking the construction of an educational facility provided that they have a long term tenant (whether a school, educational institution or an operator) who wishes to enter into a long term lease of the facility. Although beyond the scope of this article, build to suit education projects are an important consideration and examined in greater detail in the article entitled \"<a href=\"https://www.tamimi.com/law-update-articles/build-to-suit-education-projects/\">Build to Suit Education Projects</a>\" authored by Partner and Head of Real Estate, Jeremy Scott, in this month’s edition of Law Update.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"alignright wp-image-8272 size-large\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/shutterstock_549215536-690x1024.jpg\" alt=\"\" width=\"640\" height=\"950\" />Traditional Contracting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">This is probably one of the most often encountered forms of procurement adopted by developers in the education sector. Essentially the developer (also known as the \"employer\") will engage a professional team of consultants (usually an architect, mechanical and electrical engineer, civil and structural engineer and perhaps other specialist consultants) to prepare designs and specifications for the works that are to then be constructed by a building contractor. Such designers typically have a proven track record and experience in operating in the education sector and this provides comfort that the designs will be well suited for an education facility and will be readily accepted by the relevant authorities.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The contractor will be engaged separately by the developer under a construction contract and will be responsible for engaging sub-contractors to the extent required in order to allow them to complete the required works in accordance with the approved designs.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The building contract will only be responsible for the construction of the works (as design responsibility remains vested in the design team). Given that school projects may concern the expansion of existing facilities (as opposed to ‘green field’ projects), it is likely that the construction works will need to be carried out in accordance with a detailed programme to ensure that interference and disruption during school time is minimised. Additionally, the construction contract needs to contain a specific procedure for the rectification of defects, again to ensure that construction works do not encroach on the day-to-day running of the school.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Some of the advantages of traditional contracting include that the employer retains control over the design of the project and therefore can monitor quality and ensure their requirements in this regard are met. This is a potentially telling advantage on account of the planning and design nuances that are applicable to school designs. There is, however, a greater risk of the building contractor being delayed and of them incurring cost overruns due to the additional oversight and involvement that the employer will have in the project. Delays can be particularly harmful as they may result in the school not being completed in time for an academic year and this could result in significant losses being incurred. In addition, there will be multiple points of responsibility, which can make the employer pursuing a claim in respect of defects that arise, more complex, costly and time consuming.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Design and Build Contracting</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">The design and build procurement route generally involves the design of the works being undertaken entirely by the building contractor/its professional team of design consultants. Alternatively the initial design will be developed by the employer/its professional team of design consultants, subsequent to which responsibility for these designs will transfer to the contractor by way of novation of the design consultant appointments.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Here the building contractor takes single point responsibility and thus is liable to the employer for both the design and construction of the works.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The advantages associated with design and build contracting include that it offers greater certainty in terms of time for completion and cost, as such projects are usually for a defined duration and priced on a fixed, lump sum basis (this is of course provided that the employer does not make any changes to the required scope of works). As noted above, delays can be very damaging in the context of a school project so developers (and their funders) typically address this issue in detail in the construction contract. For example, the building contractor may be entitled to an early completion bonus while the employer will often insist on the ability to instruct the building contractor to accelerate the works if they fall behind schedule. Although delay damages are a ‘last resort’, thought should be given to the quantum of delay damages so that they correspond (as far as possible) to the loss that the employer will suffer arising out of a delay (i.e. if the facility is not ready for the start of the school term).</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The presence of single point responsibility makes it more straightforward for the employer and other parties with recourse to the building contractor, to seek redress should any design defects or workmanship issues arise, as opposed to having to pursue the relevant design consultants individually.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Disadvantages of this procurement route include that there may be added scope for delays to the project due to the changes that might be requested by the employer during the construction of the project or otherwise as a consequence of a delay in novating the design consultants to the building contractor. Such changes can also impact on costs. The employer also loses a degree of control over the project and therefore is less able to maintain oversight over quality, when compared to the traditional procurement route. This can have a significant impact in the context of an educational establishment on account of the typically prescriptive Employer’s Requirements. It is therefore important that the design and build contractor is closely supervised.</p>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Public- Private Partnerships</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Public Private Partnerships (or \"PPPs\") structures have been used to procure schools, including in the United Kingdom and Australia but are less common in the region. In the traditional sense, the public authority would engage a private entity (usually in the form of a Special Purpose Vehicle) to design, construct, operate and maintain a school for a term of usually between 15 to 25 years, in exchange for which usage payments will be made to the private entity.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">The introduction of the recent PPP Law in Dubai in addition to the proposed enactment of the draft Private Sector Participation Law (which will follow the previously introduced Privatization Projects Manual) in Saudi Arabia, underlines the growing emphasis being placed on PPPs by governments in the region and it may help facilitate the gradual adoption of this approach within the region. For the time being however, ‘quasi’ PPP structures are more likely to be adopted, whereby a private entity may grant a long term concession to a specialist school to design, construct, operate and maintain an educational facility.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">An important advantage of PPPs is that it allows the procuring entity to leverage efficiencies and expertise in the private sector in order to enable it to attain its development objectives. For the private sector, PPPs can assist in helping to secure the third party funding necessary to enable the project to proceed, due primarily to the involvement of a public authority.</p>\r\n<p dir=\"LTR\" align=\"LEFT\">Disadvantages of this method of procurement include that the procurement and tendering process can be lengthy and expensive, when compared to the traditional procurement process.</p>\r\n\r\n<h3 dir=\"LTR\" align=\"LEFT\"><img class=\"wp-image-8246 alignleft\" src=\"https://www.tamimi.com/wp-content/uploads/2018/09/August-Edition-DPS_Page_18_Image_0001.jpg\" alt=\"\" width=\"316\" height=\"262\" /></h3>\r\n<h2 dir=\"LTR\" align=\"LEFT\">\"The education sector in the Middle East has often been widely perceived as a lucrative investment opportunity for developers looking to expand their portfolio of investments…\"</h2>\r\n&nbsp;\r\n<h3 dir=\"LTR\" align=\"LEFT\">Operation and Maintenance Agreement</h3>\r\n&nbsp;\r\n<p dir=\"LTR\" align=\"LEFT\">Once a school has been constructed, in order for it to remain in good working order and attractive to the market, it must be properly operated and maintained. This is usually undertaken by the developer appointing an operation and maintenance contractor (\"O&amp;M Contractor\") under an operation and maintenance agreement (\"O&amp;M Agreement\", otherwise also known as a \"facilities management contract\"). Some of the more important provisions of an O&amp;M agreement, that the parties should ensure are adequately addressed, include the following:</p>\r\n\r\n<ul>\r\n 	<li dir=\"LTR\">Having a clear and detailed scope of works specifying exactly what is required of the O&amp;M Contractor in addition to the key performance indicators (or \"KPIs\" against which their performance will be measured). These KPIs should be SMART (Specific, Measurable, Achievable, Relevant and Time Based);</li>\r\n 	<li dir=\"LTR\">A warranty that the O&amp;M Contractor has carried out all reasonable investigations and inspections of the school facility and that the asset is capable of being managed to the standards prescribed by the O&amp;M Agreement. This will reduce the risk of the O&amp;M Contractor seeking to blame the building contractor for any deficiencies in the services they perform;</li>\r\n 	<li dir=\"LTR\">From a practical perspective, where the school is being newly constructed, it may be a good idea to have the O&amp;M Contractor inspect the asset prior to Take Over and to attend any tests on completion under the construction contract. The contractor may also be required to provide the O&amp;M Contractor with training for the operation and maintenance of the school. This will need to be addressed at the earliest stages of a project so that it is possible for the construction contract to include clauses to address issues of this nature;</li>\r\n 	<li dir=\"LTR\">Penalties where the O&amp;M Contractor does not achieve the KPIs or for example, where there is an interruption to the operations of the school during school and non-school hours; and</li>\r\n 	<li dir=\"LTR\">Termination rights which may be linked to a breach of the KPI regime.</li>\r\n</ul>\r\n<p dir=\"LTR\" align=\"LEFT\">There is of course a suite of other important considerations that the parties should be mindful of when negotiating an O&amp;M Agreement, such as insurance, force majeure, performance security and payment. In any event the contract should be closely examined to ensure it is tailored to the specific commercial arrangement between the parties, in addition to the laws of the jurisdiction or Emirate which will govern the contractual relationship.</p>\r\n<em>Al Tamimi &amp; Company’s <a href=\"https://www.tamimi.com/practice/construction-infrastructure/\">Construction and Infrastructure</a> team regularly advises on all elements of the construction procurement process. For further information please contact <a href=\"https://www.tamimi.com/lawyer/euan-lloyd/\">Euan Lloyd</a> (<a href=\"mailto:E.Lloyd@tamimi.com\">E.Lloyd@tamimi.com</a>).</em>');
