Ultimate Beneficial Ownership: Special Report
Jordan – Amendments to Companies Law No.22 and Corporate Regulations No. 129
The Jordanian Companies Law No.22 [1997] and Corporate Regulations No. 129 [2009] have been amended, effective as of the 1st of April 2024.
According to the amendment of Article (59), the Shareholders must pay the first 50% of the company’s incorporation capital at the moment of incorporation and the remaining 50% within 60 days of that date.
In addition, according to the amendment of Article (9), in the event that the minutes of an ordinary or special meeting are not deposited or filed within ten days of the meeting, the Companies Control Department will deduct 1 JOD for each day of such delay.
These requirements apply for all legal entities established in Jordan.
The risk of non-compliance
| Non-compliance with Article (59): |
|---|
| No monetary sanctions are applied but a company may be transferred to suspended companies list which may result in liquidation of the company initiated by the Court. |
| Non-compliance with Article (9): | |
|---|---|
| Not depositing general assembly minutes for the purpose of approving respective financial statements (AGM minutes) | 1 JOD per each day of being late |
| Not depositing general assembly minutes (ordinary or extraordinary) for any other purpose | 1 JOD per each day of being late |
