Financial Restructuring and Bankruptcy Law

Article 278 — Article (278) Unlawful Participation of Creditor in the Proceedings

Part Seven · Chapter One: Crimes, Penalties and Rehabilitation

Any creditor, who commits any of the following acts shall be punished with imprisonment for a period not exceeding (2) two years and / or a fine not exceeding (AED 200,000) two hundred thousand UAE dirhams: 1. Deliberately overstated their debts. 2. Took part in deliberations or voting while knowing that they are legally prohibited from doing so. 3. Enter into a secret agreement with the debtor, whereby they are granted special benefits to the detriment of the rest of the creditors, while being aware of the same.

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