In this type, the Chairman and majority of the Directors in a public shareholding company must be UAE nationals. In addition UAE nationals should hold at least 51% of the shares. Public Shareholding Company is a company with a capital divided into equal shares. In such companies a shareholder's liability is limited to the number of shares held by him. Minimum capital required to form a Public Shareholding Company is AED 10 million (US $ 2,724,796) with a nominal face value of AED 1 - 100, and for a banking entity it is AED 40 million and insurance and investment companies is AED 25 million. Among the other requirements for establishing a public joint stock company is the preparation of a founders' agreement, a prospectus or invitation for public subscription supported by an overall business plan or feasibility study and an auditors certificate, a due diligence survey, a memorandum and articles of association. A PJSC must have at least 10 founder members and its management should be vested in a board of directors consisting of a minimum of three to a maximum of fifteen persons whose term of office may not exceed three years. The founder members may only hold 35% of the share capital, as 65% is required to be offered to the public. Companies engaged in banking, insurance or financial activities can be run as public share holding companies.
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