Shareholding Company
Shareholding companies are suitable primarily for large projects or operations, since the minimum capital required is AED 10 million for a public shareholding company, and AED 2 million for a private shareholding company. Public Shareholding Company is a company with a capital divided into equal shares. In such companies a shareholder’s liability is limited to the number of shares held by him.
Silent Features of Shareholding Company
- The Chairman and the Directors in a public shareholding company must be UAE nationals.
- In addition UAE nationals should hold at least 51% of the shares.
- A PJSC must have at least 10 founder members and its management should be vested in a board of directors consisting of a minimum of three to a maximum of fifteen persons whose term of office may not exceed three years.
- Less flexibility of profit distribution than is permissible in the case of limited liability companies.
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