In the name of God them Merciful the most Compassionate, I wrote this research to everyone want to successes and get a good knowledge in the Stocks Issued by A Public Joint Stock Company (PJSC), I wrote this paper to every man and women and I put this project between their hand. I discuss in this project the characteristics of the share, types of shares, negotiation of shares in more deep details, loan stock(Debentures) and the last thing is the loss and destruction of shares and debentures. I try to collect as much as I can from the UAE Law. Finally, this project adds a good value to me and I hope it will be a good paper. First of all let me give you the definition of the company:
Article 4: “a contract in accordance with which two or more persons participate in an economic project by providing a share of the funds or effort required and to share the profits or losses resulting from such projects” My project will took about this type of company the Public Joint Stock Company: Article 64: “Any company whose capital is divided into (transferable shares) of equal value. The liability of each shareholder is (limited) to the value of the shares to which he has subscribed”. I will take one part of this company which is the Stocks Issued by A company:
Stocks Issued by A company:
Stocks that are issuable by a company are shared and debentures. It shall not be permissible to issue foundation shares nor to grant special privileges to the founders or other parties, nor shall it be lawful for a company to issue shares conferring special right of any kind upon their owners. Part one
There are two basic types of company security, shares and debentures. The distinction is that a shareholder is a member of the company, whereas a debenture holder is a creditor of the company. The share is a bond representing a part in the capital of the joint stock company. The word “share” indicated the partner’s right in the company and it is also the proof of the right.
Characteristics of the share:
Equivalence of the value of the shares:
The company capital is divided into shares of equal value. The nominal value of each share should not be inferior to 5 pound or superior to 1000 pounds. Shares are equal in value in order to facilitate the calculation of the majority in the company’s general assembly and the distribution of profits on shareholders. Equal value shares means equal rights granted by these shares the equality in obligations resulting from these shares.
Negotiability of shares:
The bearer share is negotiable through delivery. The nominal share, for its part, is transferred by recording in the company register. This is what differentiates the share from the partner’s part in the company of persons which cannot be transferred without the consent of partners. c)
Indivisibility of the share:
The share is indivisible. If the share were inherited by a number of persons, it cannot be divided among them. They should assign one of them to practice the rights relative to the share vis-à-vis the company. Types of shares:
Monetary shares and shares in kind:
The monetary shares are the shares that represent monetary contributions in the company capital. The subscriber should pay 10% of its value upon subscription, which amount is increased to 25% within three month maximum from the establishment of the company. The remaining amount must be paid during the period set by the board of directors on condition that it does not exceed five years from the date of establishment. The shares in kind are the shares that represent the contributions in kind in the capital. These shares must be fully paid upon subscription. They should be evaluated by the constituent association, and they cannot be 2 years have passed from the date of establishment. 2)
Nominal shares and bearer shares:
The nominal share includes the name of the shareholder. His ownership is proven by recording his name in the company register...
References: 1) http://www.dfm.ae/dfm/Main/Main.htm
2) Commercial Law, commercial operation- Merchants Commercial Companies, by Dr.Mohamed Elsayed, first issue,2004, Al-halabi legal publications, p.392-p.397.
3) Company Law, Keith Abbott, B.A, fourth edition, 1990, DP publications Ltd, London, and Beirut-Lebanon. p.133
4) Cases and Materials in Company Law, L.S. Sealy, Third edition, 1985, London. Butterworth & Co publishers LTS. P.401.
5) Law for Business studies students, Dr. Abdulla Hassan Mohammed, 2005, United Arab Emirates, Publication Department, p.49-p.52.
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