Board Resolution for Free Zone Company Cancellation

Termination Board Resolution

Canceling or terminating a Free Trade Zone Company requires a signed board resolution where all partners of the Free Trade Zone Company agree on ceasing operations.

The board resolution may specify further termination conditions, even up-to specific conditions where the termination of the company can be with held.

There are 2 ways to legalize the board resolution, which is to notarize the board resolution or sign it in the presence of a Free Trade Zone official.
 

Sample Board Resolution for Cancellation

Below a sample of a board resolution for cancellation of a Free Trade Zone company. The text must be printed on company paper and stamped with the company stamp. The original signed and stamped board resolution is submitted at the Free Trade Zone in person with all partners present.

If all partners can't come together at the Free Trade Zone the board resolution must be translated in Arabic and notarized. Partners not there can be represented by someone else through a power of attorney.

---------------------------------------------------------------------------------------------
BOARD RESULUTION, ref. YYYYYY/date

Today, Day Month Year, the board of CompanyName FZC operating under Trade License : 3121334 with members ;

-    Member 1 – 50% partner and appointed manager
Passport number: 32342342423 – Russian Nationality

-    Member 2 – 50 % partner
Passport number: 3dweqdewd – Japanese Nationality

have decided the following:

Company Name FZC shall be canceled at the moment of renewal of the trade license (Day-Month-Year) or earlier, unless the following events occur:

·    Both shareholders decide to sell the shares to third parties, with approval of the board;

·    One of the shareholders decides to sell the shares either to the remaining shareholder or to a third party, with approval of the board;

·    Both shareholders have expressed their wish to renew the trade license.

These events will have to be expressed or occur before the Day-Month-Year.

These events will have to comply by the rules and regulations applicable in the FREE-ZONE-NAME free trade zone.


Member 1                            Member 2
Date:                                Date:
Signature:                            Signature:

Company Stamp :
---------------------------------------------------------------------------------------------

 

Notarized board resolution

A notarized board resolution requires all partners to appear at the notary and sign the cancellation board resolution. This path is preferred since it involves an independent legal party to witness and verify the agreement among all Free Trade Zone partners. Also the agreement is tested by a 3rd party to rule out any errors in the statement.

To be able to notarize the board resolution at the notary, it must be translated into Arabic by a translator recognized by the notary. Usually authorized translators are present at the notary office. Make sure the translator can deliver the translation at the day the partners gather for signing. If there are 3 partners, there must be 3 board resolutions and translations. Each of the Free Trade Zone Company partners receives a notarized and signed original of the board resolution.

At the same time, one of the Free Trade Zone partners can receive a power of attorney from the other partners to manage further cancellation of the Free Trade Zone company.