Shares dividends (Capitalization)

The distribution of shares is considered one of the ways to increase the capital of the public shareholding company, and it is by adding the optional reserve or profits or both to the capital.

Persons benefiting from the service

Public Shareholding Company.

Conditions of obtaining the service
  1. The company should be a public shareholding company, member of the Securities Depository Center.
  2. The company should obtain the necessary approvals from the Companies Control Department and the Jordan Securities Commission to make the increase.
Required Documents
  1. The approval of the company’s general assembly to increase its capital.
  2. A letter from the Companies Control Department including the approval of the Ministry of Industry, Trade and Supply to increase the company’s capital.
  3. The approval of the JSC’s Board of Commissioners to register the share capital increase at the JSC.
  4. The memorandum and articles of associations authenticated by the general controller of companies.
  5. The equation of the capital increase
Procedures
  1. Applying for registration of the share capital increase with the Securities Depository Center immediately after the registration of the share capital increase with the Jordan Securities Commission by distributing free shares to the company's shareholders.
  2. Verifying the completeness of the documents.
  3. Informing the SDC's members of the date of executing of the process of the share capital increase through a memo issued for this purpose.
  4. Carrying on the share capital increase of the concerned company
  5. Placing fractional shares resulting from the implementation of the increase in a special account in the name of the company to be sold through the market and distributing the sale proceeds to the concerned shareholders.
  6. Informing the concerned public shareholding company of the completion of the increase process and provide them with the shareholder register for matching balances and ownership restrictions (lien and pledge)
  7. The SDC collects fees for increasing the capital from the public shareholding company and for updating the register of the company’s shareholders.
  8. Informing the JSC, ASE and SDC’s members that the SDC completed the procedures of the increase by virtue of letter issued for this purpose.
Estimated Time

One business day

Location

Headquarter of the SDC

Partner institutions

None.

Estimated Fees

The SDC shall collect fees for updating the registers of the owners of securities based on item (First / A / 2) of the SDC’s revenues schedule attached to the internal by-law of the Securities Depository Center’s Proceeds. The SDC also shall collect fees for registering the increase shares in accordance in with the provisions of Article (8/A) of the internal by-law of the Securities Depository Center’s Proceeds.

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