A perfect legislation is a jurist’s delight. But in the process of making the law flawless, if the situation that necessitated the law continues to go unresolved, it is of little consequence so far as the victims of the situation are concerned. It does not matter how brilliant the drafting is.
It is already three years since work on a bankruptcy law for the UAE began, but after so many missed goal posts and deadlines, it is now clear that a law would not be in place at least until the end of 2013. Of course, there is no guarantee that one would be ready by then, if past experience is any guidance.
This would mean that hundreds of companies, or even thousands, which have gone out of business in the wake of the unprecedented financial crisis and widespread payment defaults, perished without even a glimmer of hope for a lifeline that a bankruptcy law would have typically provided. Driven to desperation, a large number of these business owners have either fled the country for their inability to face the consequences or have landed up in jail. For, under the prevailing rules, much of what follows business failures is criminal offence.
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