Union Properties PJSC, a prominent real estate development company in the United Arab Emirates, has issued a clarifying disclosure regarding the approval of shareholder proxies. This announcement comes in alignment with Clauses 1 and 2 of Article 40 of the Corporate Governance Manual, emphasizing the company's commitment to transparency and regulatory compliance.

According to the disclosure, shareholders who have the right to attend the general assembly may delegate someone to attend on their behalf. This person can be from outside the company's board members, staff, or any securities brokerage company. The delegation must be a written document explicitly stating the agent's right to attend and vote on decisions. However, a delegated person cannot represent more than 5% of the company's issued capital.

Furthermore, the shareholder's signature on the power of attorney must be approved by recognized entities such as a Notary Public, Chamber of Commerce, banks, or licensed financial markets in the UAE. This ensures the authenticity and legality of the delegation process.

The move by Union Properties to clarify these rules highlights its dedication to maintaining a robust governance framework. By ensuring that proxy rules are clear and adhered to, the company protects the rights of its shareholders and upholds its reputation for transparency.

Union Properties has been a key player in the UAE's real estate sector since its incorporation in 1993. The company has consistently demonstrated resilience and adaptability in a dynamic market environment. This latest announcement is part of its ongoing efforts to enhance corporate governance practices, which are crucial for investor confidence and long-term growth.

Investors should view this development positively, as it underscores Union Properties' commitment to governance and shareholder rights. With a stable governance framework, the company is well-positioned to capitalize on growth opportunities in the real estate market.

Given the company's proactive approach to governance and its strong market presence, investors may consider a hold strategy for Union Properties' shares. This approach allows investors to benefit from potential future gains as the company continues to strengthen its governance and operational practices.