A Public Shareholding Company is an important and common type of business entity in the United Arab Emirates. This company is characterized by dividing its capital into shares that are sold to the public and investors to contribute to financing the company’s activities and achieving its goals.
The public shareholding system allows the company to expand its capital by raising funds from the public through the sale of shares.
Shareholders are only responsible for their contributions to the registered capital and are not liable for the company’s debts and other obligations.
The public shareholding system encourages the public and investors to participate in the ownership and profitability of the company.
Profits are distributed based on shareholders’ stakes in the registered capital, ensuring a fair distribution of profits.
Public shareholding companies operate with a professional management system, where a board of directors is appointed to oversee operations and make decisions.
A Public Shareholding Company can attract more investors and expand its activities according to growth and expansion needs.
At Abeer Al-Dahmani Advocates & Legal Consultancy, we provide the necessary legal support for the establishment and management of Public Shareholding Companies. We assist our clients in understanding the requirements of setting up this type of company and complying with the relevant laws and regulations in the United Arab Emirates.
Our goal is to provide shareholders with the necessary legal advice to safeguard their rights and mitigate potential business risks, ensuring success and stability in their commercial activities.
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A Public Shareholding Company is a type of business entity in which the general public can participate by purchasing shares. These companies are characterized by having their capital composed of contributions from various investors, and profits and losses are distributed based on their stakes in the company.
In a Public Shareholding Company, shareholders are liable for the company’s debts up to the value of their contributions to the capital. This means that shareholders are not personally responsible for the company’s debts beyond the amount they paid for their shares.
Yes, a Public Shareholding Company can list its shares on the stock exchange to make them available for public trading and investment.
The necessary procedures to establish a Public Shareholding Company vary depending on the country and local laws. Generally, legal documents need to be prepared, specifying the type of company, its address, required capital amount, and submitted to the relevant authorities for approval and official registration.
The main difference between the two types lies in the capital funding; a Public Shareholding Company is funded by the general public investors, whereas a Private Shareholding Company is funded by specific shareholders. Additionally, a Public Shareholding Company is subject to more laws and regulations concerning transparency and disclosure.