One of the most important economic procedures and laws that encourage the investment of funds and revitalize the financial market is the conversion of private, family, limited liability and joint stock companies into public closed joint stock companies. Accordingly, Law No. 11 of 2023 was issued, which stipulates procedures and steps to encourage the conversion or merger of closed private joint-stock companies, limited liability companies, and joint ventures into public closed joint-stock companies. However, there are two issues that call into question regarding the positive difference fees for the revaluation of assets in this law, namely:
1- Increasing the percentage of fees on limited liability companies set at 5%, which is the highest compared to 1% for public closed shareholding companies, and 3% for private closed shareholding companies. Note that the primary target is family and limited liability companies.
2- The period for paying these fees does not exceed 30 days. It is logical that the period be longer and even include a grace period or payments that encourage the owners of these companies to transfer or merge.
In my opinion, the increase in fees for limited liability companies, set at 5%, and the 30-day period for paying these fees are major obstacles to converting family and limited liability companies into anonymous public joint-stock companies, and therefore to the implementation of this law and the achievement of its objectives.
The conversion of private, family, limited liability, and joint stock firms into public closed joint stock companies is one of the most significant economic practises and legal provisions that promote capital investment and revitalise the financial market. This led to the issuance of Law No. 11 of 2023, which outlines procedures and actions to promote the conversion or merger of closed private joint-stock companies, limited liability companies, and joint ventures into public closed joint-stock corporations. The positive difference fees for the revaluation of assets under this statute are nonetheless called into doubt by two factors, specifically:
Dear Ravichandran Shanmugam, I am interested in the opinion of these companies and their role in moving the wheel of investments and investment activities.
- Badges
- Science topic
- Similar topics
- Linguistics
- Composition Studies
- Publication