Arab Advisors Group completed changing its legal status on January 14, 2003, from a limited liability company into a private shareholding company. There are twelve private shareholding companies in Jordan to date.
Law number 4 of 2002 established the guiding rules for establishing private shareholding companies in the country, which allow for implementing modern incentives such as instituting employee ownership plans. Abbassi Law Office was Arab Advisors Group’s legal council in this step.
Arab Advisors Group become Jordan’s twelfth Private Shareholding Company. Before January 14, the company was one of close to 7,000 limited liability companies in Jordan. The move was made to put in place an employee ownership plan whereby all members of Arab Advisors Group’s team can opt to become partners in the company over a four-years vesting period.
“We recognize that our brilliant team members are the company’s most important asset and its guarantee for continued success. This is why the company owners wholeheartedly adopted the employee ownership plan,” Jawad Abbassi, Arab Advisors Group’s co-founder and president said.
“The Amended Jordanian Companies Act granted wide discretionary powers to the shareholders in Private Shareholding Companies, allowing the company to issue different classes and types of securities,” said Abbassi. “It has the option of listing in the securities market to raise funds, along many other benefits and advantages”
“This type of companies gives investors the advantages found in the closely controlled private companies along with those found in the public shareholding companies. The law allows companies to have stock options plans, different classes of stocks with different voting rights in addition to offering many ‘Delaware laws-compatible’ issues.”
Alaa Jalal Abbassi, president of Abbassi Law Office, commented, “The law increases the legal options for companies, investors and entrepreneurs in the market and diminishes the need for startup companies to register outside Jordan as was the case before. Arab Advisors Group needed to change its status into a private shareholding company to be able to start its employee ownership plan.”
Established in 1960, Abbassi Law Office provides legal services across Jordan and the Arab world from its offices in Jordan's two biggest cities, Amman and Zarqa. Abbassi Law Office offers its clients legal advise and legal representation. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
