SCA Corporate Finance and Listing Requirements

Question 1

What are the SCA listing requirements for companies seeking to list on UAE exchanges?

Accepted Answer

Minimum capital, operating history, profitability track record, corporate governance compliance, free float requirements, and comprehensive disclosure

Answer

SCA listing requirements include minimum paid-up capital, sufficient operating history (typically 3 years), demonstrated profitability, corporate governance compliance, minimum free float percentage, and comprehensive prospectus disclosure.

Question 2

What continuous disclosure obligations do listed companies have under SCA regulations?

Accepted Answer

Immediate disclosure of material information, quarterly and annual financial reporting, board/ownership changes, and any events that could affect share price

Answer

Listed companies must immediately disclose price-sensitive information, publish quarterly and annual financial reports, report changes in board composition and major shareholdings, and disclose any events potentially affecting share price.

Question 3

What are the SCA regulations on tender offers and takeovers?

Accepted Answer

Mandatory tender offer trigger thresholds, equal treatment of shareholders, minimum acceptance period, independent advisor appointment, and board disclosure requirements

Answer

SCA takeover regulations specify: mandatory tender offer thresholds (typically 30% ownership triggers full offer), equal treatment principles, minimum offer periods, independent board advisor requirements, and comprehensive disclosure to shareholders.

Question 4

What related party transaction rules does the SCA enforce?

Accepted Answer

Board approval (excluding interested directors), shareholder approval for material transactions, independent valuation, full disclosure, and fair dealing requirements

Answer

SCA related party transaction rules require: board approval with interested director abstention, shareholder approval for material transactions, independent fairness opinions, full transaction disclosure, and arms-length dealing requirements.

Question 5

What dividend distribution regulations does the SCA establish?

Accepted Answer

Dividends must be paid from distributable profits, comply with SCA approval procedures, maintain minimum capital requirements, and follow shareholder-approved distribution policies

Answer

SCA dividend regulations require: distribution from profits only (not capital), board recommendation and shareholder approval, maintenance of minimum capital after distribution, and compliance with the company's approved dividend policy.

SCA Practice Test

SCA Practice Test

SCA Corporate Finance and Listing Requirements