Choose Your Company 
Private Joint Stock Company Abu Dhabi

Article (215) of Federal Law No. (8) of 1984 concerning commercial companies defined a private joint stock company as being that in which a number of not less than (3) three founder members may incorporate among themselves a private joint stock company whose shares may not be floated to public subscription, but they must fully subscribe to the total capital which may not be less than (Dhs. 2) millions.

Except the provisions made on public subscription, all the provisions provided in the aforementioned law concerning public joint stock companies should be applicable to private joint stock companies.

However, the law permitted a joint stock to be converted to a public joint stock in case the following terms and conditions are duly fulfilled:

1. The nominal value of issued shares should be fully paid - up.
2. A period of two fiscal years should be elapsed since the early inception of the company.
3. The company should have realized net profits distributable among shareholders with the average of not less than 10% of the capital during the said two years elapsed before the date of requesting conversion.
4. The unordinary general assembly should have taken a decision on conversion upon achieving the majority of votes representing three quarters of the company capital, at least.
5. The Minister of Economy & Commerce would have agreed to issue a decision declaring the company conversion to a public joint stock company. The decision should be promulgated in the official gazette along with the company memorandum and article on the expense of the company.