FULFILLING THE VALUE OF SHARES IN CLOSED JOINT-STOCK COMPANIES AS A CONDITION FOR TRADING

Abstract

This study addressed the subject of fulfilling the value of shares in closed joint-stock companies before allowing them to be traded, considering it as a fundamental condition for disposing of them. The focus was placed on joint-stock companies due to their role as effective instruments in the field of investment and their pivotal contribution to supporting economic development in the modern era.

Joint-stock companies are characterized by their high capacity to pool capital, which makes them an effective tool in supporting transparency and reinforcing the principles of good governance. These companies are subject to a legal and regulatory framework aimed at ensuring the rights of shareholders, particularly through compliance with fulfilling the value of shares.

The issue of this study revolves around the mechanisms of fulfilling the value of shares and determining such value, in addition to clarifying the extent of its completion as a fundamental condition for trading. The shareholder's right to trade shares is considered one of the essential features that distinguishes this type of securities, as freedom of trading is regarded as the general rule. Nevertheless, this freedom is not absolute, as certain legal restrictions may be imposed, which could extend to temporary prohibition in some cases. Alongside legal restrictions, contractual restrictions may also be imposed on share trading. These restrictions may be included within the company's articles of association, or they may appear in special agreements between all shareholders or only some of them. In the latter case, the effect of such restrictions is limited to the contracting parties and does not become binding on others. The study concluded with a number of recommendations that were presented within its content.