The Union Coop has initiated the process of transitioning from a consumer cooperative society to a public joint-stock company (PJSC). This decision was made during the Board of Directors meeting on Monday and is part of the cooperative's strategic plan to augment its financial resources, enhance competitiveness, and achieve its long-term objectives, which include expanding its footprint, launching new projects, and improving services for shareholders, customers, and the community.
This transformation is in line with Union Coop's commitment to align with the advancements in the UAE's retail sector, guided by the leadership's vision. If implemented, this transition is anticipated to bolster the local economy while reinforcing transparency and governance frameworks. Operating under the regulations of public joint-stock companies, Union Coop would be subject to rigorous regulatory scrutiny, thereby enhancing transparency, bolstering the credibility of financial dealings, and fostering greater confidence among shareholders in the company's operations.
The shift to a PJSC would bring several advantages, such as new investment prospects for shareholders, who would reap the benefits of the company's performance and financial outcomes. Additionally, shareholders would have the opportunity to diversify their portfolios through trading on the financial market, potentially yielding higher long-term returns. This transition would also empower Union Coop to venture into new territories, serving a broader customer base and adopting top-tier corporate governance practices.
Following a directive from the 2023 General Assembly, Union Coop has engaged Al-Tamimi Company to conduct a thorough study on the viability of this transformation. The study will evaluate the legal and financial ramifications, along with an examination of pertinent regulations, and will be submitted to the relevant authorities and the General Assembly for a final verdict.
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