The majority of shareholders in Dubai developer Union Properties have accepted a strategy to ensure the company’s activities continue, as well as a recovery plan.
The majority shareholders also accepted the nomination of Grant Thornton as the company’s auditor for 2022, according to a report to the Dubai Financial Market, where its shares are listed.
The company’s Board of Directors has also been given authority to designate legal and financial experts, accountants, and law firms in order to file and pursue the responsibility action against the previous board members, who were fired at the general assembly meeting in November of last year.
Union Properties revealed in a stock market announcement in November of last year that the UAE’s Federal Public Funds Prosecution had requested the imprisonment of company chairman Khalifa Al Hammadi. The UAE attorney general had announced a “major” probe into the company’s alleged financial breaches a month before. The Securities and Commodities Authority filed charges alleging violations by the company’s board chairman and other executives, prompting the investigation.
According to a press release issued by the company this week, the latest turnaround strategy approved at the company’s annual general meeting last month focused on leveraging its existing real estate portfolio and adjacent services subsidiaries with a core focus “on returning to profitability by optimising its cost base and restructuring its debt.”
Union Properties recorded a financial loss of Dhs966.76 million in 2021, a significant drop from the previous year’s net profit of Dhs200.98 million.
“As shareholders endorse our new turnaround strategy and affirm their support for legal action against the previous board and management, the AGM marks a significant step toward resolving the company’s legacy issues and progressing with the company’s rejuvenation,” said Amer Khansaheb, board member and managing director of Union Properties.
“To achieve profitability, our approach focuses on restructuring operations to reduce costs and build a smaller organisation.” Several green projects are being implemented across our communities to improve resource efficiency and reduce waste.”
