Legal Nature of Preferred Stock Subscription in Jordanian Legislation

Abstract

This research shows the legal nature for preferred stock subscription and issuance according to Jordanian Law. When reviewing the Jordanian Companies Law No. 22 of 1997 and amended by Law No. 34 of 2017 that repeated of the Jordanian Companies Law which guarantees the organization of the legal provisions related to the preferred stocks, in addition to the laws and instructions that cover the subject that does not provide clear legal prospect regarding the provisions and legal actions that fall on the preferred stocks subscription. Who reads the provisions of the Jordanian Securities Law No. (18) of 2017 and the instructions issued there under, which placed the matter of organizing the subscription of the securities did not mention, even marginally, the process to be followed in the case of subscription in preferred stocks. Therefore, legal regulation preferred stock provisions under the Jordanian Companies Law is not sufficient and does not contain preferred stocks’ privacy. Consequently, Jordanian legislator needs to add or amend current texts in a way covers the nature of the preferred stocks and its rules and how to deal with them.

Keywords: Common Stocks, Contractual Nature, Preferred Shareholder, Preferred Stocks, Private Shareholding Company.


Article Review Status: Published

Pages: 1-20 (Download PDF)

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