Public Shareholding Company

A PJSC must have at least 10 founder members and its management should be vested in a board of directors consisting of a minimum of three to a maximum of fifteen persons whose term of office may not exceed three years. The founder members may only hold 35% of the share capital, as 65% is required to be offered to the public. Companies engaged in banking, insurance or financial activities can be run as public shareholding companies. A Public Shareholding Company in UAE is a company with capital divided into equal negotiable shares. In such companies, a shareholder’s liability is limited by the number of shares held by him. The minimum capital required to form a Public Shareholding Company in UAE is AED 10 million (US $ 2,724,796) with a nominal face value of AED 1–100 For a banking entity it is AED 40 million and for insurance and investment companies is AED 25 million. Among the other requirements for the establishment of a public joint stock company is the preparation of a founders’ agreement, a prospectus or invitation for public subscription supported by an overall business plan or feasibility study and an auditors certificate, a due diligence survey, a memorandum and articles of association.
PJSC must have at least 10 founder members and its management should be vested in a board of directors consisting of a minimum of three to a maximum of fifteen persons whose term of office may not exceed three years.The Chairman and majority of the Directors in a public shareholding company must be UAE nationals. In addition at least 51% of the shares of the PJSC should be held by UAE nationals. The founder members may only hold 45% of the share capital, as 65% is required to be offered to the public.