Joint Stock Company Basics

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Questions and Answers

Match the following corporate governance terms with their descriptions:

Board Members = Elected by Ordinary General Assembly (GA), term of office cannot exceed 4 years, can be dismissed by GA, re-election allowed unless specified in AOA, AOA specifies method of forming board and voting. Termination of Board Members = GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action. Disclosure of Interest = Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit. Liability = Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting.

Match the following shareholder meeting terms with their descriptions:

Shareholder GA Meetings = Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology, quorum requirements. Extraordinary GA Meetings = Powers to amend AOA with exceptions, procedures for calling meetings and setting quorum. Quorum and Decisions = Different quorum percentages for ordinary and extraordinary meetings, decisions passed by majority and two-thirds votes respectively. Capital Decisions = Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions.

Match the following meeting minutes terms with their descriptions:

Meeting Minutes = Content and purpose of meeting minutes, including attendance, share ownership, votes, decisions, and a brief summary of discussions. Disclosure of Interest = Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit. Liability = Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting. Termination of Board Members = GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action.

Match the following corporate governance terms with their descriptions:

Board Members = Elected by Ordinary General Assembly (GA), term of office cannot exceed 4 years, can be dismissed by GA, re-election allowed unless specified in AOA, AOA specifies method of forming board and voting. Quorum and Decisions = Different quorum percentages for ordinary and extraordinary meetings, decisions passed by majority and two-thirds votes respectively. Capital Decisions = Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions. Shareholder GA Meetings = Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology, quorum requirements. Signup and view all the answers

Match the following corporate governance terms with their descriptions:

Disclosure of Interest = Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit. Liability = Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting. Extraordinary GA Meetings = Powers to amend AOA with exceptions, procedures for calling meetings and setting quorum. Meeting Minutes = Content and purpose of meeting minutes, including attendance, share ownership, votes, decisions, and a brief summary of discussions. Signup and view all the answers

Match the following shareholder meeting terms with their descriptions:

Shareholder GA Meetings = Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology, quorum requirements. Termination of Board Members = GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action. Disclosure of Interest = Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit. Capital Decisions = Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions. Signup and view all the answers

Match the following corporate governance terms with their descriptions:

Termination of Board Members = GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action. Liability = Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting. Extraordinary GA Meetings = Powers to amend AOA with exceptions, procedures for calling meetings and setting quorum. Meeting Minutes = Content and purpose of meeting minutes, including attendance, share ownership, votes, decisions, and a brief summary of discussions. Signup and view all the answers

Match the following shareholder meeting terms with their descriptions:

Quorum and Decisions = Different quorum percentages for ordinary and extraordinary meetings, decisions passed by majority and two-thirds votes respectively. Capital Decisions = Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions. Shareholder GA Meetings = Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology,quorum requirements. Disclosure of Interest = Board members must disclose direct or indirect interests in business transactions,cannot vote on resolutions regarding their interest,company can take legal action for breachof contract or unlawful profit. Signup and view all the answers

Match the following corporate governance terms with their descriptions:

Board Members = Elected by Ordinary General Assembly (GA), term of office cannot exceed4 years,can be dismissed by GA,re-election allowed unless specifiedin AOA,AOA specifies methodof forming boardand voting. Terminationof Board Members = GAcan terminate membershipfor repeated absenteeism,notificationof interestin businesstransactions required,failingto discloseinterestcan result in legal action. Disclosureof Interest = Board members must disclose direct or indirect interests in business transactions,cannot vote on resolutions regarding their interest,company can take legal action for breachof contract or unlawful profit. Liability = Board members and members with interests can be held liable for damages from business transactions,unless they object explicitly during the meeting. Signup and view all the answers

Match the following shareholder meeting terms with their descriptions:

Shareholder GA Meetings = Chaired by chairman or vice chairman,shareholderscan attendand assign someone to represent them,meetingscan be held using technology,quorum requirements. Extraordinary GA Meetings = Powers to amend AOA with exceptions,proceduresfor calling meetingsand setting quorum. Quorumand Decisions = Different quorum percentagesfor ordinary and extraordinary meetings,decisions passed by majorityand two-thirds votes respectively. Capital Decisions = Validityand registration requirementsfor capital decisions,75%of shareholders with voting rights requiredfor certain decisions. Signup and view all the answers

Match the following terms with their descriptions in relation to a joint stock company:

Authorized capital = Total shares of the company Issued capital = Shares owned by shareholders Paid up amount = Minimum one quarter of the capital value AOA = Must include company's name, headquarters, objectives, capital details, shares, management, company's term, commencement details, and other provisions Signup and view all the answers

Match the following statements with their accuracy in relation to a joint stock company:

Liability of shareholder = Limited to their investment Minimum capital requirement = Not less than 500k riyals Increase in issued capital = Can be done within authorized limits and if paid in full Debts & obligations liability = Only for business activities Signup and view all the answers

Match the following requirements with their inclusion in the AOA of a joint stock company:

Name of the company = Must be included Headquarters details = Must be included Objectives of the company = Must be included Number and classes of shares = Must be included Signup and view all the answers

Match the following elements with their description in relation to the capital structure of a joint stock company:

Authorized capital details = Mentioned in the AOA Issued capital increase = Can be done within authorized limits and if paid in full Paid up amount requirement = Must not be less than one quarter of the value Shareholder's liability = Limited to debts and obligations of business activities Signup and view all the answers

Match the following provisions with their inclusion in the AOA of a joint stock company:

Management and board members details = Must be included Company's term details = Must be included Commencement details = Must be included Other provisions = Must be included Signup and view all the answers

Match the following statements with their accuracy regarding the liability in a joint stock company:

Liability of shareholder = Limited to debts and obligations of business activities Debts & obligations liability = Only for business activities Minimum capital requirement = Not less than 500k riyals Increase in issued capital = Can be done within authorized limits and if paid in full Signup and view all the answers

Match the following terms with their descriptions regarding the capital structure of a joint stock company:

Authorized capital = Mentioned in the AOA as total shares of the company Issued capital increase = Allowed within authorized limits and if fully paid up Paid up amount requirement = Minimum one quarter of the value Shareholder's liability = Limited to debts and obligations of business activities Signup and view all the answers

Match the following elements with their description in relation to a joint stock company:

Authorized capital details = Stated as total shares in the AOA Issued capital increase limit = Within authorized limits and if fully paid up Paid up amount minimum requirement = $500k riyals for authorized capital, one quarter for paid up amount Shareholder's liability limit = $500k riyals for authorized capital, one quarter for paid up amount Signup and view all the answers

Match the following requirements with their inclusion in the AOA of a joint stock company:

Name of the company = Mandatory inclusion Headquarters details = Must be included Objectives of the company = Must be included Number and classes of shares inclusion = Must be included Signup and view all the answers

Match the following legal actions with their descriptions:

Request for inspection of the company = A shareholder or more, representing at least 5% of the company’s capital, can ask the court to inspect the company if the conduct of board members or auditor is suspicious Methods of capital reduction = 1. Cancel some shares equal to the amount they want to lower 2. Reduce the nominal value of each share by getting rid of part of it, equal to the company’s loss Types & classes of shares = There are 3 types of shares: 1. Ordinary 2. Preferred 3. Redeemable. The AOA can provide different types of shares and give certain rights/privileges or impose restriction on these shares Obligation to sell shares = The majority shareholder have the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same conditions. The minority shareholders have the right to force the majority to ensure the sale of their shares (shares of minority) when the majority are selling, for the same price & under the same conditions Signup and view all the answers

Match the following consequences with their triggers:

Court-ordered inspection = After hearing the statements of board members & auditor, the court order for inspection at the expense of whoever complained Company losses announcement = The board of directors must, within 60 days of their knowledge announce the losses, and must within 180 days call for an extraordinary meeting to consider the continuation of the company and take measures to resolve the losses or to terminate the company Company capital reduction statement = Before they can lower the capital, the Board of Directors has to prepare a statement explaining why they’re doing it, what the company’s obligations are, and how the lowering might affect those obligations. This statement has to be read out at the General Assembly Meeting Effect of subscription for shares = When someone subscribes to the shares, it means they’ve agreed to the company’s AOA and will follow any decisions made by all shareholders. This applies whether they’re at the meetings or not, and whether they agree with the decisions or not Signup and view all the answers

Match the following shareholder rights with their descriptions:

Shareholder's request for inspection = A shareholder or more, representing at least 5% of the company’s capital, can ask the court to inspect the company if the conduct of board members or auditor is suspicious Obligation to sell shares = The majority shareholder have the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same conditions. The minority shareholders have the right to force the majority to ensure the sale of their shares (shares of minority) when the majority are selling, for the same price & under the same conditions Rights related to share ownership = Shares must be registered to the holder’s name, and if owned by several people, they can appoint one of them to represent them when exercising their rights and they will all be jointly liable for obligations that arise from owning shares Effect of subscription for shares = When someone subscribes to the shares, it means they’ve agreed to follow any decisions made by all shareholders, whether they’re at meetings or not Signup and view all the answers

Match these legal actions with their outcomes:

Court-ordered inspection = The court can order precautionary measures and can call for a GA (General Assembly) meeting to make necessary decisions. The court can also remove board members & auditors and assign a qualified person to supervise management of company Methods of capital reduction = The company buys and then gets rid of some of its own shares, in proportion to amount they want to lower Company losses announcement = If losses reach half of issued capital then board must announce losses within 60 days and call for an extraordinary meeting within 180 days Company capital reduction statement = The Board has to prepare a statement explaining why they’re doing it, what company’s obligations are, and how lowering might affect those obligations. This statement has to be read out at GA meeting Signup and view all the answers

Match these statements with their related topics:

Shares ownership structure = Shares must be registered to holder’s name; multiple owners can jointly appoint a representative; AOA will determine nominal value; split & merge allowed; unlisted JSCs must give certificate of ownership Types & classes of shares = There are three types: ordinary, preferred, redeemable; AOA can provide different types with certain rights/privileges or restrictions; Shares of same class have equal rights & obligations Company losses management = Board must announce losses within 60 days and call for extraordinary meeting within 180 days; Consider continuation or termination; Take measures to resolve losses Methods of capital reduction = Cancel some shares equal to desired amount; Reduce nominal value by getting rid of part equal to company’s loss; Prepare a statement explaining why it is being done Signup and view all the answers

Match these legal actions with their triggers:

Request for inspection of company = A shareholder or more, representing at least 5% of company’s capital, can ask court for inspection if conduct of board members or auditor is suspicious Effect of subscription for shares = Subscription means agreement with AOA and commitment to follow decisions made by all shareholders, whether present at meetings or not Obligation to sell shares = Majority shareholder can force minority to accept offer from buyer; Minority shareholders can force majority to ensure sale under same conditions Company capital reduction statement = Before lowering capital, Board must prepare statement explaining why it is being done and how it might affect obligations; Statement must be read out at GA meeting Signup and view all the answers

Match these shareholder rights with their related outcomes:

Shareholder's request for inspection = After hearing statements from board members & auditors, court orders inspection at expense of complainant; Can order precautionary measures and call GA meeting if complaint is valid; Can remove board members & auditors and assign qualified person Rights related to share ownership = Shares must be registered; Multiple owners can appoint a representative; All jointly liable for obligations arising from owning shares Obligation to sell shares = Majority shareholder right: force minority acceptance of buyer's offer; Minority right: force majority's sale ensuring same conditions Effect of subscription for shares = Subscription means agreement with AOA and commitment to follow decisions made by all shareholders Signup and view all the answers

Match these legal actions with their consequences:

Request for inspection of company = - After hearing statements from board members & auditors, court orders inspection at expense of complainant - If complaint is valid, court can order precautionary measures and call GA meeting - Court can remove board members & auditors - Can assign qualified person - Can also remove board members & auditors and assign qualified person - Can call GA meeting Methods of capital reduction = - Company buys and then gets rid of some own shares - Allows canceling some shares equal desired amount - Reducing nominal value by getting rid part equal company’s loss Company losses announcement = - Board must announce losses within 60 days - Call extraordinary meeting within 180 days - Consider continuation or termination - Take measures resolve losses Company capital reduction statement = - Before lowering capital, Board prepares statement explaining why it is being done - Explains how it might affect obligations - Statement must be read out at GA meeting Signup and view all the answers

Match these shareholder rights with their triggers:

Request for inspection = A shareholder or more representing at least five percent can ask court if conduct is suspicious. Obligation To Sell Shares = Majority shareholder has right. Rights Related To Share Ownership = Shares owned by several people. Effect Of Subscription For Shares = When someone subscribes. Signup and view all the answers

Match these legal actions with their outcomes:

Request For Inspection Of The Company = Can ask court if conduct is suspicious. Methods Of Capital Reduction = Allows canceling some shares. Types And Classes Of Shares = Three types. Obligation To Sell Shares = Minority shareholders have right. Signup and view all the answers

Board members are elected by the Ordinary General Assembly (GA) and their term of office cannot exceed _ years. They can be dismissed by GA and re-election is allowed unless specified in AOA. AOA specifies the method of forming the board and _.

4, voting Signup and view all the answers

The GA can terminate membership of board members for repeated absenteeism, and notification of interest in business transactions is required. Failing to disclose interest can result in _____ action.

legal Signup and view all the answers

Board members must disclose direct or indirect interests in business transactions, and they cannot vote on resolutions regarding their interest. The company can take legal action for breach of contract or _____ profit.

unlawful Signup and view all the answers

Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the _____.

meeting Signup and view all the answers

Shareholder GA meetings are chaired by the chairman or vice chairman. Shareholders can attend and assign someone to represent them. Meetings can be held using technology, and there are _____ requirements.

quorum Signup and view all the answers

Extraordinary GA meetings have powers to amend AOA with exceptions, procedures for calling meetings, and setting _____.

quorum Signup and view all the answers

Different quorum percentages for ordinary and extraordinary meetings exist, and decisions are passed by majority and two-thirds _____ respectively.

votes Signup and view all the answers

Validity and registration requirements for capital decisions include 75% of shareholders with voting rights required for certain _____.

decisions Signup and view all the answers

The content and purpose of meeting minutes include attendance, share ownership, votes, decisions, and a brief summary of _____.

discussions Signup and view all the answers

The GA can terminate membership of board members for repeated _____, and notification of interest in business transactions is required.

absenteeism Signup and view all the answers

Shares of the same class will have ______ nominal value

equal Signup and view all the answers

Company losses – the company losses if the losses reach half of the issued ______

capital Signup and view all the answers

The majority shareholder have the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same ______

conditions Signup and view all the answers

Shares can only be issued at a higher value than their ______ value

nominal Signup and view all the answers

After each meeting, these minutes should be written down in a special book and signed by the meeting’s ______

leader Signup and view all the answers

The AOA will determine the nominal value of the shares, and shares of the same type of class will have an ______ nominal value

equal Signup and view all the answers

Shares, debt instruments and sukuk issued by JSC – shares must be registered to the holder’s name, and if the shares are owned by several people, they can appoint one of them to represent them when exercising their rights and they will all be jointly ______ for the obligations that arise from owning the shares

liable Signup and view all the answers

The obligation to sell shares – The majority shareholder have the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same ______

conditions Signup and view all the answers

Types & classes of shares – there 3 types of shares 1. Ordinary 2. Preferred 3. ______

Redeemable Signup and view all the answers

If the JSC is unlisted, they must give certificate of ______

ownership Signup and view all the answers

Joint stock company: Its a business venture, established by one or more natural or legal persons, and the capital is divided into negotiable shares, its liable only for the debts & obligations of its business activities, and the liability of the shareholder is limited. - Its capital must not be less than ______ riyals, and the paid up amount may not be less than one quarter of the value. - The authorized capital (total shares of the comp) will be mentioned in the AOA - The issued capital (shares owned by shareholders) can be increased within the limits of the authorized capital and if it’s paid in full The AOA of JSC must include: * Name of the company. * Headquarters. * Objectives of the company. * The authorized & issued capital. * Number and classes of shares. * The management and the number of board members. * company’s term Details of commencement. Other provisions.

500k Signup and view all the answers

The AOA of JSC must include: * Name of the company. * Headquarters. * Objectives of the company. * The authorized & issued capital. * Number and classes of shares. * The management and the number of board members. * company’s term Details of commencement. Other ______.

provisions Signup and view all the answers

The authorized capital (total shares of the comp) will be mentioned in the ______

AOA Signup and view all the answers

The issued capital (shares owned by shareholders) can be increased within the limits of the authorized capital and if it’s ______ in full

paid Signup and view all the answers

The capital is divided into negotiable ______.

shares Signup and view all the answers

Its a business venture, established by one or more natural or legal persons, and the capital is divided into negotiable ______.

shares Signup and view all the answers

Its liable only for the debts & obligations of its business activities, and the liability of the shareholder is ______.

limited Signup and view all the answers

Its capital must not be less than 500k riyals, and the paid up amount may not be less than one quarter of the ______.

value Signup and view all the answers

The AOA of JSC must include: * Name of the ______.

company Signup and view all the answers

The AOA of JSC must include: * The management and the number of ______ members.

board Signup and view all the answers

Joint stock company: Its a business venture, established by one or more natural or legal persons, and the capital is divided into negotiable ______.

shares Signup and view all the answers

Types & classes of shares – there 3 types of shares 1. Ordinary 2. Preferred 3. ______

Other Signup and view all the answers

Shares of the same class will have ______ nominal value

equal Signup and view all the answers

The majority shareholder have the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same ______

conditions Signup and view all the answers

Validity and registration requirements for capital decisions include 75% of shareholders with voting rights required for certain ______.

decisions Signup and view all the answers

The authorized capital (total shares of the comp) will be mentioned in the ______

AOA Signup and view all the answers

The GA can terminate membership of board members for repeated ______, and notification of interest in business transactions is required.

absenteeism Signup and view all the answers

After each meeting, these minutes should be written down in a special book and signed by the meeting’s ______

chairman Signup and view all the answers

Shareholder GA meetings are chaired by the chairman or vice chairman. Shareholders can attend and assign someone to represent them. Meetings can be held using technology, and there are ______ requirements.

quorum Signup and view all the answers

Shares, debt instruments and sukuk issued by JSC – shares must be registered to the holder’s name, and if the shares are owned by several people, they can appoint one of them to represent them when exercising their rights and they will all be jointly ______ for the obligations that arise from owning the shares

liable Signup and view all the answers

Board members are elected by the Ordinary General Assembly (GA) and their term of office cannot exceed _____ years. They can be dismissed by GA and re-election is allowed unless specified in AOA. AOA specifies the method of forming the board and

4 Signup and view all the answers

GA can terminate membership of board members for repeated _____, and notification of interest in business transactions is required.

absenteeism Signup and view all the answers

Board members must disclose direct or indirect interests in business transactions, and they cannot vote on resolutions regarding their interest. The company can take legal action for breach of contract or _____ profit.

unlawful Signup and view all the answers

Different quorum percentages for ordinary and extraordinary meetings exist, and decisions are passed by majority and two-thirds _____ respectively.

votes Signup and view all the answers

Shareholder GA meetings are chaired by the chairman or vice chairman. Shareholders can attend and assign someone to represent them. Meetings can be held using technology, and there are _____ requirements.

quorum Signup and view all the answers

The AOA of JSC must include: * The management and the number of _____ members.

board Signup and view all the answers

The capital is divided into negotiable _____.

shares Signup and view all the answers

The content and purpose of meeting minutes include attendance, share ownership, votes, decisions, and a brief summary of _____.

discussions Signup and view all the answers

Validity and registration requirements for capital decisions include 75% of shareholders with voting rights required for certain _____.

decisions Signup and view all the answers

The GA can terminate membership of board members for repeated absenteeism, and notification of interest in business transactions is required. Failing to disclose interest can result in _____ action.

legal Signup and view all the answers

Types & classes of shares – there 3 types of shares 1. Ordinary 2. Preferred 3. ______

Redeemable Signup and view all the answers

Shares can only be issued at a higher value than their ______ value

nominal Signup and view all the answers

Match the following statements with their accuracy in relation to a joint stock company: The authorized capital (total shares of the comp) will be mentioned in the ______

AOA Signup and view all the answers

Shareholder GA meetings are chaired by the chairman or vice chairman. Shareholders can attend and assign someone to represent them. Meetings can be held using technology, and there are ______ requirements

quorum Signup and view all the answers

Board members must disclose direct or indirect interests in business transactions, and they cannot vote on resolutions regarding their interest. The company can take legal action for breach of contract or ______ profit

unlawful Signup and view all the answers

The majority shareholder have the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same ______

conditions Signup and view all the answers

Match the following terms with their descriptions regarding the capital structure of a joint stock company: Shares of the same class will have ______ nominal value

equal Signup and view all the answers

Validity and registration requirements for capital decisions include 75% of shareholders with voting rights required for certain ______

decisions Signup and view all the answers

The GA can terminate membership of board members for repeated ______, and notification of interest in business transactions is required

absenteeism Signup and view all the answers

The content and purpose of meeting minutes include attendance, share ownership, votes, decisions, and a brief summary of ______

discussion Signup and view all the answers

Shares, debt instruments and sukuk issued by JSC – shares must be registered to the holder’s name, and if the shares are owned by several people, they can appoint one of them to represent them when exercising their rights and they will all be jointly ______ for the obligations that arise from owning the shares

liable Signup and view all the answers

Study Notes

Board Members: Elected by Ordinary General Assembly (GA), term of office cannot exceed 4 years, can be dismissed by GA, re-election allowed unless specified in AOA, AOA specifies method of forming board and voting.
Termination of Board Members: GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action.
Disclosure of Interest: Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit.
Liability: Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting.
Shareholder GA Meetings: Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology, quorum requirements.
Extraordinary GA Meetings: Powers to amend AOA with exceptions, procedures for calling meetings and setting quorum.
Quorum and Decisions: Different quorum percentages for ordinary and extraordinary meetings, decisions passed by majority and two-thirds votes respectively.
Capital Decisions: Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions.
Meeting Minutes: Content and purpose of meeting minutes, including attendance, share ownership, votes, decisions, and a brief summary of discussions.
Board Members: Elected by Ordinary General Assembly (GA), term of office cannot exceed 4 years, can be dismissed by GA, re-election allowed unless specified in AOA, AOA specifies method of forming board and voting.
Termination of Board Members: GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action.
Disclosure of Interest: Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit.
Liability: Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting.
Shareholder GA Meetings: Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology, quorum requirements.
Extraordinary GA Meetings: Powers to amend AOA with exceptions, procedures for calling meetings and setting quorum.
Quorum and Decisions: Different quorum percentages for ordinary and extraordinary meetings, decisions passed by majority and two-thirds votes respectively.
Capital Decisions: Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions.
Meeting Minutes: Content and purpose of meeting minutes, including attendance, share ownership, votes, decisions, and a brief summary of discussions.
Board Members: Elected by Ordinary General Assembly (GA), term of office cannot exceed 4 years, can be dismissed by GA, re-election allowed unless specified in AOA, AOA specifies method of forming board and voting.
Termination of Board Members: GA can terminate membership for repeated absenteeism, notification of interest in business transactions required, failing to disclose interest can result in legal action.
Disclosure of Interest: Board members must disclose direct or indirect interests in business transactions, cannot vote on resolutions regarding their interest, company can take legal action for breach of contract or unlawful profit.
Liability: Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the meeting.
Shareholder GA Meetings: Chaired by chairman or vice chairman, shareholders can attend and assign someone to represent them, meetings can be held using technology, quorum requirements.
Extraordinary GA Meetings: Powers to amend AOA with exceptions, procedures for calling meetings and setting quorum.
Quorum and Decisions: Different quorum percentages for ordinary and extraordinary meetings, decisions passed by majority and two-thirds votes respectively.
Capital Decisions: Validity and registration requirements for capital decisions, 75% of shareholders with voting rights required for certain decisions.
Meeting Minutes: Content and purpose of meeting minutes, including attendance, share ownership, votes, decisions, and a brief summary of discussions.

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Description

Test your knowledge about joint stock companies, which are business ventures with capital divided into negotiable shares, limited liability for shareholders, and specific capital requirements. This quiz covers the key characteristics and requirements of joint stock companies.

Joint Stock Company Basics

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Questions and Answers

Match the following corporate governance terms with their descriptions:

Match the following shareholder meeting terms with their descriptions:

Match the following meeting minutes terms with their descriptions:

Match the following corporate governance terms with their descriptions:

Match the following corporate governance terms with their descriptions:

Match the following shareholder meeting terms with their descriptions:

Match the following corporate governance terms with their descriptions:

Match the following shareholder meeting terms with their descriptions:

Match the following corporate governance terms with their descriptions:

Match the following shareholder meeting terms with their descriptions:

Match the following terms with their descriptions in relation to a joint stock company:

Match the following statements with their accuracy in relation to a joint stock company:

Match the following requirements with their inclusion in the AOA of a joint stock company:

Match the following elements with their description in relation to the capital structure of a joint stock company:

Match the following provisions with their inclusion in the AOA of a joint stock company:

Match the following statements with their accuracy regarding the liability in a joint stock company:

Match the following terms with their descriptions regarding the capital structure of a joint stock company:

Match the following elements with their description in relation to a joint stock company:

Match the following requirements with their inclusion in the AOA of a joint stock company:

Match the following legal actions with their descriptions:

Match the following consequences with their triggers:

Match the following shareholder rights with their descriptions:

Match these legal actions with their outcomes:

Match these statements with their related topics:

Match these legal actions with their triggers:

Match these shareholder rights with their related outcomes:

Match these legal actions with their consequences:

Match these shareholder rights with their triggers:

Match these legal actions with their outcomes:

Board members are elected by the Ordinary General Assembly (GA) and their term of office cannot exceed _____ years. They can be dismissed by GA and re-election is allowed unless specified in AOA. AOA specifies the method of forming the board and _____.

The GA can terminate membership of board members for repeated absenteeism, and notification of interest in business transactions is required. Failing to disclose interest can result in _____ action.

Board members must disclose direct or indirect interests in business transactions, and they cannot vote on resolutions regarding their interest. The company can take legal action for breach of contract or _____ profit.

Board members and members with interests can be held liable for damages from business transactions, unless they object explicitly during the _____.

Shareholder GA meetings are chaired by the chairman or vice chairman. Shareholders can attend and assign someone to represent them. Meetings can be held using technology, and there are _____ requirements.

Extraordinary GA meetings have powers to amend AOA with exceptions, procedures for calling meetings, and setting _____.

Different quorum percentages for ordinary and extraordinary meetings exist, and decisions are passed by majority and two-thirds _____ respectively.

Validity and registration requirements for capital decisions include 75% of shareholders with voting rights required for certain _____.

The content and purpose of meeting minutes include attendance, share ownership, votes, decisions, and a brief summary of _____.

The GA can terminate membership of board members for repeated _____, and notification of interest in business transactions is required.

Shares of the same class will have ______ nominal value

Company losses – the company losses if the losses reach half of the issued ______

The majority shareholder have the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same ______

Shares can only be issued at a higher value than their ______ value

After each meeting, these minutes should be written down in a special book and signed by the meeting’s ______

The AOA will determine the nominal value of the shares, and shares of the same type of class will have an ______ nominal value

The obligation to sell shares – The majority shareholder have the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same ______

Types & classes of shares – there 3 types of shares 1. Ordinary 2. Preferred 3. ______

If the JSC is unlisted, they must give certificate of ______

The AOA of JSC must include: * Name of the company. * Headquarters. * Objectives of the company. * The authorized & issued capital. * Number and classes of shares. * The management and the number of board members. * company’s term *Details of commencement. *Other ______.

The authorized capital (total shares of the comp) will be mentioned in the ______

The issued capital (shares owned by shareholders) can be increased within the limits of the authorized capital and if it’s ______ in full

The capital is divided into negotiable ______.

Its a business venture, established by one or more natural or legal persons, and the capital is divided into negotiable ______.

Its liable only for the debts & obligations of its business activities, and the liability of the shareholder is ______.

Its capital must not be less than 500k riyals, and the paid up amount may not be less than one quarter of the ______.

The AOA of JSC must include: * Name of the ______.

The AOA of JSC must include: * The management and the number of ______ members.

Joint stock company: Its a business venture, established by one or more natural or legal persons, and the capital is divided into negotiable ______.

Types & classes of shares – there 3 types of shares 1. Ordinary 2. Preferred 3. ______

Shares of the same class will have ______ nominal value

The majority shareholder have the right to force the minority to accept an offer from a serious buyer for purchasing all the company’s shares for the same price given to the majority & under the same ______

Validity and registration requirements for capital decisions include 75% of shareholders with voting rights required for certain ______.

The authorized capital (total shares of the comp) will be mentioned in the ______

The GA can terminate membership of board members for repeated ______, and notification of interest in business transactions is required.

After each meeting, these minutes should be written down in a special book and signed by the meeting’s ______

Shareholder GA meetings are chaired by the chairman or vice chairman. Shareholders can attend and assign someone to represent them. Meetings can be held using technology, and there are ______ requirements.

Board members are elected by the Ordinary General Assembly (GA) and their term of office cannot exceed _____ years. They can be dismissed by GA and re-election is allowed unless specified in AOA. AOA specifies the method of forming the board and

GA can terminate membership of board members for repeated _____, and notification of interest in business transactions is required.

Board members must disclose direct or indirect interests in business transactions, and they cannot vote on resolutions regarding their interest. The company can take legal action for breach of contract or _____ profit.

Different quorum percentages for ordinary and extraordinary meetings exist, and decisions are passed by majority and two-thirds _____ respectively.

Shareholder GA meetings are chaired by the chairman or vice chairman. Shareholders can attend and assign someone to represent them. Meetings can be held using technology, and there are _____ requirements.

The AOA of JSC must include: * The management and the number of _____ members.

The capital is divided into negotiable _____.

The content and purpose of meeting minutes include attendance, share ownership, votes, decisions, and a brief summary of _____.

Validity and registration requirements for capital decisions include 75% of shareholders with voting rights required for certain _____.

The GA can terminate membership of board members for repeated absenteeism, and notification of interest in business transactions is required. Failing to disclose interest can result in _____ action.

Board members are elected by the Ordinary General Assembly (GA) and their term of office cannot exceed _ years. They can be dismissed by GA and re-election is allowed unless specified in AOA. AOA specifies the method of forming the board and _.

The AOA of JSC must include: * Name of the company. * Headquarters. * Objectives of the company. * The authorized & issued capital. * Number and classes of shares. * The management and the number of board members. * company’s term Details of commencement. Other ______.