The Council of Ministers adopts a decision to allow the trading of cooperative societies’ shares in the financial markets
The Cabinet, headed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved a decision regarding the trading of cooperative societies' shares in the country's financial markets, aimed at strengthening the regulatory environment for the cooperative sector and raising its competitiveness in line with the directions of the state.
The resolution aims to develop the regulatory and supervisory process for stock trading in the capital markets in the country and create new opportunities for improvement and development with regard to trading in cooperative shares. The financial markets in the country in terms of transparency, flexibility and speed of procedures.
The resolution supports stimulating the growth of cooperatives and giving them more space to work, expand and diversify the activities and economic sectors in which they operate, while providing full protection for the rights of shareholders and ensuring the best commercial practices of cooperatives, and preserving the concept of cooperative work as a parallel model to the concept of traditional commercial activities and at the same time a vital tributary of economic growth and prosperity the society.
According to the decision, the financial markets are allowed to establish special platforms for registering, trading and transferring the ownership of the shares of cooperative societies, so that they are independent from the subscription and general trading platforms in the market, which provides the opportunity for the shareholders of the cooperatives to trade shares under the supervision of regulatory and supervisory bodies as well as determining the real price of the share in complete transparency and based on Supply and demand factors away from any irregular trading, which increases the confidence of shareholders.
The decision specified granting the financial markets the power to set and introduce terms, conditions and controls in which all procedures, standards, requirements, models and mechanisms regarding registration, trading, grievance and others are defined, in a way that contributes to protecting shareholders’ rights and ensuring the foundations of fair investment for them.
The decision included that the financial markets, when listing and trading cooperative shares, play the role of the registrar, as they take over the task of keeping the register that shows the membership of the cooperative shareholders, the number of shares and any relevant details such as profits and any other notes related to the registration and trading.
The move to allow the trading and listing of cooperative shares in the country’s financial markets, which is the first of its kind in the region, represents a new and advanced station in the matter of organizing the cooperative sector, enhancing the economic return on cooperative activities, and at the same time achieving wide benefits for shareholders in terms of preserving rights and enabling sound business practices. in trading operations and ensure its ease and reliability.
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