Distribution of all or some of the treasury shares to the company’s workers in the context of the employees’ share option plans conditional upon the general assembly’s approval, and in accordance with the regulatory rules approved by the general assembly of the company and.Swap deals in the event of merger with or an acquisition offer of other companies.Distribution of bonus shares to shareholders without an increase of the capital or the number of shares issued. Repayment of a company’s outstanding debt.Settlement of a company’s account receivables.Reduction of the company’s paid-up capital.Maintaining stability of the company’s share price.The Executive Bylaws limit the use of treasury shares to the following cases: At this time, the legislator devoted a full chapter clarifying and regulating treasury shares and stipulated that such provisions shall apply to public and closed shareholding companies, except that units subject to the supervision of the Central Bank shall be excluded. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Amendments (‘Executive Bylaws’), which define treasury shares as a company’s shares which the issuing company re-purchases or buys back or otherwise makes use of. In November 2015, the Kuwaiti legislator issued the new executive bylaws by way of Law No. However, the Kuwaiti legislator did not address treasury shares in the Companies Law with any deeper or clearer research. 287 of 2016 Promulgating the Executive Regulation of Law No.1 of 2016 Promulgating the Companies Law (‘Companies Law’), the Kuwaiti legislator has defined treasury shares as: “ the shares acquired and resold by the company and used on its issued shares traded in the stock exchange within the limit of the decreed percentage”. They are no longer outstanding shares in the hands of a holder.’ Ballantine is quoted as saying: ‘ Treasury shares are indeed a masterpiece of legal magic, the creation of something out of nothing. Ballantine entitled ‘The Curious Fiction of Treasury Shares’. In 1946, the California Law Review published an article by Henry W. The concept of treasury shares is an accounting concept and the debate over how to treat them goes back for decades. Treasury shares do not pay dividends, have no voting rights and should not be included in shares outstanding calculations. They may have come from a re-purchase or buyback from shareholders, or they may have never been issued to the public in the first place. Treasury shares are the portion of shares that a company keeps in its own treasury. Read and sign up for future law updates! Read the full edition With the above barely scratching the surface, this edition is a treasure trove of insightful knowledge you won’t want to miss out on. “Focus on Transport” provides updates on a variety of jurisdictions and topics, such as the Recent Update to Laws Governing Autonomous Vehicles and Drones in the UAE, Legislations to the International Trade in Gold and Diamonds, a Guideline to Purchasing an Aircraft, and an Overview of the new Maritime law. Our “Africa Focus” explores a number of topics, including renewable energy in Africa, e-commerce, cross-border trade, infrastructure developments through PPP, and we share regulatory updates on several jurisdictions. The second part of this edition shines a spotlight on the transport, logistics, and insurance sector. This packed double-edition covers the latest regulatory updates from Africa, with commentary on some of the most important developments. Our new issue, “Sails of Progress,” boasts a colorful palette of changes across the Middle Eastern and the African Landscape. Sails of Progress: Mother Africa and Transport & Logistics
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