- In a joint stock company, the capital must not be less than 250,000 Egyptian pounds as stipulated by law.
- There is no maximum limit set by the law for the capital. The issued capital can consist solely of cash shares or a combination of cash and in-kind shares.
- However, in the case of a combination of cash and in-kind shares, the value of the in-kind shares should not exceed 75% of the issued capital at most, and the cash share should not be less than 25% of the issued capital at least.
- When establishing the company, shareholders are required to pay at least 10% of the issued capital and deposit it into the company’s bank account, obtaining a bank certificate confirming this deposit.
- An additional 15% of the capital must be paid within three months from the establishment date and also deposited into the company’s account.
- Payment of the remaining 75% of the issued capital shall be made within a maximum period of five years from the date of the company’s establishment.
- The Board of Directors determines the installments’ values and payment dates. In case there is a material or moral in-kind share, it must not exceed 75% of the total capital, its value must be fully paid, and it should be evaluated by a specialized expert report according to the type of share.
- The reassessment is then conducted by the General Authority for Investment Performance Management to issue a final report on the share’s value. For further in-depth details, refer to the comprehensive book on theoretical and practical aspects of corporate law.
Doctor/ Mahmoud Mostafa Abdallah
Doctor/Ola Mostafa Abdallah