Public joint stock company meaning
A Public Joint Stock Company UAE can be defining as. A company whose capital share is split into negotiable shares of the same value; also the partners in the company are liable only to the degree of his or her share; in the share capital of the company. Public Joint Stock Company UAE can also be defining as; any organization in which a UAE public body holds any share in the capital. According to the Commercial Companies Law a minimum of AED 10 million (10,000,000); share capital is requires for a Public Joint Stock Company UAE.
The twenty five per cent (25%) of share capital of PJSC Dubai must be establish on subscription. In addition, fifty one per cent (51%) of shares of PJSC Dubai must be hold by the UAE national; and a minimum of fifty five per cent (55%) of shares of Public Joint Stock Company UAE must be open to the general public.
This type of a company needs a minimum of 10 founding members; with the exception of in cases where the government entity is involved. It is essential for a foreign company to know that anyone who signs the initial MOA will be considered as a founding member and hence will be liable for the share of the company. The Board of Directors of Public Joint Stock Company UAE must have a minimum of three; and no more than twelve board members. The board chairman, as well as a majority of the board member must be UAE nationals. UAE businesses involving banking, insurance or investment of funds on behalf of third parties must take the form of a public joint stock company.
Documents requires for Public joint stock company UAE
- An application form type for the license.
- Initial Approval certificate (Original).
- A reservation of trade name (Original).
- Copies of valid UAE ID Cards of every Partner.
- A valid passport copy of each of the partner.
- Copy of the family book (Jinsiya) of every UAE citizens.
- Also a valid lease contract copy is requires for PJSC Dubai.
- A copy of the trade license Dubai or commercial register; if the shareholder is legal entity that is if it is a company.
- A copy of the signatures duly certified by the Notary Public.
- The approval from the Minister of Economy, to form this company.
- Also a copy of the MOA suitably certified by the Notary Public.
- An approved photo copy of the trade name sign board; which conveys the calligrapher signature, seal and board sizes.
- An approval from the Executive Council to setup this company.
- No objection letter from the capable authorities; in situation that the activity may not be operating except with an authorization from the capable authorities.
- A certificate from one of the banks working in the country; which shows that the share capital has been deposited for PJSC Dubai.
- A copy of the registration certificate from the Ministry of Economy.
Conditions for JPSC Dubai
- Finding the approval of the Managerial Council, prior to the issuance of the Initial approval. And after the approval of the trade name
- Founding member will not be less than 10 members.
- There must be at least 3 members of the Board of Directors; and shall not go beyond 12 members for any JPSC Dubai.
- Share capital of this type of a company shall not be less than AED 10 Million.
- All documents shall be in Arabic. Documents in foreign languages must be translate into Arabic from a legal translator; and also it should by duly certified by the Ministry of Foreign Affairs and Embassies; for companies incorporated abroad.
- The age of the partners must be at least 21 years for a JPSC Dubai.
- The License Application Form shall be giving in to by the concerned partners or by a legally authorized representative.
- All the documents must have an electronic copies. And also the verification of the originals will be requires.
Share capital of Public joint stock company Dubai
The share capital of a public joint stock company Dubai is consisting of shares of the same small value. All shares in the share capital have equal rights as well as equal obligations. The shares of a public joint stock company Dubai are freely moveable. But remember that 51% of the shares of JPSC Dubai must be hold by UAE nationals; or company only owned by UAE local person. Also, the owner must retain their share for a period of two year after listing. The JPSC Dubai may not issue bearer shares. A public joint stock company may issue public debentures. And also note that the value of the debentures must not exceed the capital. All the rights of debenture holders in respect of a single issue must be equal. Debentures may also be changeable into shares of the company.
The basic rights of any shareholder in Public joint stock company UAE
Shareholders have the following basic rights:
- Each shareholder in a Public joint stock company uae; has the right to vote in the annual general assembly in the election of directors;
- Shareholders have the right to transfer their shares;
- Also shareholders have the right to share in the profits of the company.