‎ Stocks Redemption

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Jazia Hasan Abu Jadoou’, Dr. Shereen Nabil Abu Ghazaleh


This paper examines and analyzes the right of the Private Shareholding Companies in stocks redemption according to the Jordanian Companies Law No. 22 of 1997 and its amendments in comparison with United Kingdom Companies Act 2006 with the aim of clarifying the concept of redemption and showing weaknesses and strengths within the Jordanian legislation regulating the redemption right of a company. It clarifies what is the redemption, its conditions, how to regulate the redemption procedures and the effects of redemption. It concludes that the Jordanian legislator, even though he had stipulated the concept of the right of redemption, yet there is lack in regulating this right heretofore. Therefore, it recommends a number of essential issues, the most important of which is the necessity of issuing instructions that will regulate the right of the company in the redemption of its own shares in order to control the redemption process and clarify the legal implications thereof and to find a clear way for the shareholder of the redeemable shares rather than leaving him subject to the will of the contractors.

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