It’s not just the West that’s part of the Great Reshuffle, but companies closer to home as well. Dubai-based real estate developer Union Properties came out yesterday with an announcement that it’ll be changing its Chairman and Vice-Chairman for its Board of Directors.
The developer announced that it elected Mohamed Ali Al Fardan as the new Chairman and Abdul Wahab Al Halabi as the Vice-Chairman. The latest move comes after Union’s dismissal of four members of the Board a month ago, including the previous Chairman. The removal was based on a request from two Shareholders with stakes over 5%, due to claims of financial irregularities in the financial reports that the Board might’ve aided in. The previous four members are currently facing a liability lawsuit by Union Properties, while the developer as a whole is also under an investigation by the UAE Attorney-General.
Why it matters
The replacement of Board members and a full-scale investigation does not spell good news for Union Properties’ stock in the short term. The company was trading at a 1.4% decline yesterday. Fingers crossed for a turnaround, given the latest news.
