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A Deed of Company Arrangement (DOCA) is a legally binding agreement between a struggling company and its creditors in the UAE. It outlines how the business will manage its debts and operations while working toward recovery, offering an alternative to immediate liquidation under UAE Federal Bankruptcy Law.

This rescue tool lets companies keep trading while restructuring their obligations. Creditors often accept this path since it typically offers better returns than shutting down the business. Once approved by the majority of creditors and registered with UAE authorities, the DOCA becomes enforceable against all creditors, giving the company breathing room to implement its turnaround plan.

Consider a Deed of Company Arrangement when your UAE business faces serious financial difficulties but still has potential for recovery. This solution works particularly well if your company has viable operations but needs time to restructure debts, sell non-core assets, or reorganize operations without immediate threat of liquidation.

The arrangement becomes crucial when informal negotiations with creditors aren't enough, but you want to avoid bankruptcy proceedings. It's especially valuable when you need to protect ongoing contracts, maintain key supplier relationships, and keep skilled employees while working through financial challenges. Many UAE businesses use this tool during economic downturns or when facing temporary cash flow problems that require formal creditor management.

• Simple Debt Restructuring: Basic arrangement focused on extending payment terms and modifying interest rates with minimal operational changes
• Operational Restructuring: Comprehensive plan including business reorganization, asset sales, and detailed timeline for debt repayment
• Creditor-Managed: Arrangement where major creditors take an active role in company management during the recovery period
• Asset Protection: Specialized structure protecting key business assets while reorganizing debt obligations under UAE bankruptcy laws
• Hybrid Arrangements: Combines elements of debt restructuring with new capital injection, often involving existing shareholders or new investors

• Company Directors: Initiate and oversee the arrangement process, maintaining control while implementing the agreed restructuring plan
• Creditors: Review, negotiate, and vote on the arrangement terms, often forming committees for larger restructurings
• Insolvency Practitioners: Draft and administer the DOCA, ensuring compliance with UAE bankruptcy laws
• Legal Advisors: Structure the arrangement, ensure regulatory compliance, and protect all parties' interests
• UAE Courts: Approve and supervise the arrangement's implementation, ensuring fairness and legal compliance
• Employees: Often affected parties whose rights and obligations may be modified under the arrangement

• Financial Assessment: Gather detailed company financials, debt schedules, and cash flow projections
• Creditor Information: Compile complete list of creditors, amounts owed, and security arrangements
• Asset Inventory: Document all company assets, their current market value, and any existing encumbrances
• Business Plan: Develop realistic recovery strategy showing how company will return to profitability
• Stakeholder Consent: Secure preliminary agreement from major creditors on proposed terms
• Legal Requirements: Ensure compliance with UAE bankruptcy laws and court filing procedures
• Document Generation: Use our platform to create a legally-sound DOCA that includes all required elements

• Company Details: Full legal name, registration number, and registered office address in UAE
• Arrangement Terms: Clear payment schedules, debt restructuring details, and creditor treatment
• Implementation Timeline: Specific dates and milestones for executing the arrangement
• Creditor Rights: Detailed provisions for secured and unsecured creditors' treatment
• Administrator Powers: Scope of authority and responsibilities during implementation
• Termination Conditions: Circumstances that may end or modify the arrangement
• Governing Law: Explicit reference to UAE Federal Bankruptcy Law and jurisdiction
• Execution Block: Proper signature sections for all parties, including witnesses

A Deed of Company Arrangement differs significantly from a Board Resolution in both scope and purpose within UAE corporate law. While both documents relate to company governance, they serve distinct functions in different situations.

• Legal Authority: A DOCA is a binding agreement between a company and its creditors, enforced by UAE courts. A Board Resolution is an internal decision-making document that records director decisions.
• Timing and Duration: DOCAs are used during financial distress and remain active throughout the restructuring period. Board Resolutions are one-time decisions for specific corporate actions.
• Party Involvement: DOCAs require creditor participation and court oversight. Board Resolutions only need director approval.
• Implementation Scope: DOCAs restructure company debt and operations comprehensively. Board Resolutions typically address single issues or transactions.