Private Parking Facilities A new public joint stock company (PJSC) named ‘Parkin’ has been established in Dubai to assume responsibilities related to parking spaces. Issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the law grants Parkin financial, administrative, and legal autonomy. The company’s charter spans 99 years, with the possibility of renewal.
Mandate and Responsibilities of Parkin PJSC
Parkin PJSC is entrusted with the creation, planning, design, operation, and management of public parking spaces. Additionally, it is responsible for issuing permits to individuals for subscription to public parking, usage, operation, and reservation of parking spaces. The company will also undertake the establishment, design, and management of private parking spaces, along with investments in related business activities.
Role of Roads and Transport Authority (RTA): Private Parking Facilities
The law mandates the Roads and Transport Authority (RTA) to delegate certain or all of its responsibilities regarding public and private parking, as well as the issuance of relevant permits. This delegation will occur through a franchise agreement to be finalized between the RTA and Parkin PJSC.
Capital Structure and Ownership: Private Parking Facilities
Parkin’s issued and paid-up capital will be determined by its articles of association. All shares of the company are fully owned by the Government of Dubai. The Executive Council of Dubai holds the authority to decide the percentage of shares that can be transferred to third parties through public or private subscription. The company’s liability is limited to its paid-up capital, while shareholders’ responsibility is capped at the nominal value of their shares. The law permits individuals to own shares in the company through public or private subscription.
The government’s ownership percentage must not fall below 60% of the company’s capital when shares are offered for subscription.
Transition of Employees and Board Formation: Private Parking Facilities
The law allows the transfer of certain RTA employees to Parkin, safeguarding their rights through a decision issued by the authority’s chairman. Simultaneously, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, issued a resolution forming the board of directors for Parkin. Ahmed Hashem Bahrozyan will serve as the chairman, and Ahmed Hassan Mahboub as the vice-chairman.
Board’s Authority and Responsibilities: Private Parking Facilities
The resolution defines the authority and responsibilities of the board, including the approval of the company’s strategic plans and policies, issuance of financial, administrative, technical, and procurement regulations, management of assets, approval of organizational structure, and validation of contracts and agreements signed by the company.
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