Decrease of Capital

The capital of the public shareholding company is decreased with the aim of redeeming the company’s losses or distributing its excess cash to the shareholders.

Persons benefiting from the service

Public Shareholding Company.

Conditions of obtaining the service

Applying to the SDC for the share capital decrease based upon the approval of the Ministry of Industry, Trade, and Supply.

Procedures
  1. Applying to the SDC for the share capital decrease based upon the approval of the Ministry of Industry, Trade, and Supply.
  2. Verifying the completeness of the documents attached with the company’s letter.
  3. Carrying on the share capital decrease on the company’s registers at the SDC.
  4. Issuing an official letter from the SDC to notify the company of the executing the process and the fees the company have to pay attached with CD for the purpose of auditing the information of the share capital decrease.
  5. The SDC collects fees for updating the register of the shareholders of the public shareholding company from the company itself.
  6. Informing the JSC and ASE that the SDC completed the procedures of share capital decrease after providing the SDC with matching records and paying the due fees.
  7. Making the shares of the company available for trading on the electronic SDC's systems after receiving a memo from the ASE in this regard
Required Documents
  1. The approval of the company’s general assembly to decrease its capital.
  2. The approval of the Ministry of Industry, Trade and Supply to decrease the company’s capital.
  3. A letter from the Companies Control Department including the approval of the Ministry of Industry, Trade and Supply to decrease the company’s capital.
  4. Letter of non-objection from the Jordan Securities Commission to decrease the capital.
  5. The memorandum and articles of associations authenticated by the general controller of companies.
  6. The equation of the share capital decrease.
  7. Names of board members and the number of shares of each member after the decrease of capital.
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.

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