What is a Private Joint Stock Company?
A private joint stock company is a similar legal creature to a public joint stock company but its shares may not be offered to the public. They are commonly used where more than 50 shareholders wish to participate (in contrast, a limited liability company can have no more than 50 shareholders). Furthermore, under UAE rules, companies carrying out specific activities must be either a public or a private joint stock companies (eg. Islamic Finance in the event one of the founders therein is a public joint stock company). In general, all the provisions of the Commercial Companies Law No. 8 of 1984 and its amendments (the “CCL”) applicable to Public Joint Stock Companies also apply to Private Joint Stock Companies except, of course, provisions relating to public subscription of shares. The Original Rules All the original and pre-existing laws as to share register have been retained, but the new rules create additional obligations. Private Joint Stock Companies have always been obliged pursu
