Stock Company (Public) SOAG and Joint Venture (JV) in detail in this
coursework.
The Joint-Stock Company (Public) (SAOG) and Joint Venture (JV)
Commercial Companies
The public joint stock company (SAOG), is a joint stock company which has
offered its shares to the public and is listed on the Muscat Securities Market
(MSM). The minimum number of shareholders in an SAO is three (unless the
SAO has been formed by the government). There must be at least three
founders (or promoters) in an SAOG. They are required to subscribe for
between 30% and 60% of the capital, with no single founder subscribing for
more than 20% (subject to limited exceptions). In general, at least 40% of
the capital of an SAOG must be offered to the public, and there can be
different classes of shares provided these are included in the articles of
association on incorporation. The minimum issued capital is OR2m ($5.2m)
for an SAOG and OR500, 000 ($1.3m) for a SAOC. The CCL allows for the
payment of up to 50% of this required capital to be deferred for a period of
up to three years from the date of incorporation. SAOs are managed by a
board of directors (the board) who are appointed from time to time by the
SAOs shareholders. The board conducts the SAOs business by passing
resolutions in accordance with the SAOs articles of association. The
minimum number of members of the board is three for an SAOC and five for
an SAOG, with a maximum of 12 in both cases. The normal term of office for
board members is three years on a renewable basis. Shares in SAOs are
freely negotiable, subject to certain restrictions placed on the founders (a
founder shareholder cannot dispose of their shares before the firm has
published two balance sheets for two consecutive financial years) and a
shareholder may pledge their shares as a security for the shareholders own
loans and other financial obligations. The Joint ventures on the other hand
are regulated by the Commercial Companies Code (Royal Decree 4/74, as
amended by Royal Defense Decrees 13/89; 83/94; 16/96). Joint ventures are
not considered juristic persons under the law (Articles 3 and 52). Joint
types of companies can have start their businesses and how can they
manage and liquidate their businesses in Sultanate of Oman. Further it will
as well be discussed how these two types of companies can handle their
disputes in case any may occur. The researcher will as well look into the
steps that these two companies may require to manage their businesses and
what are the Omani legal systems these companies might follow in order to
have the smooth businesses. What laws and regulations are there to be
followed and in case any of these companies if goes against these laws what
could be its consequences. Putting it in brief the core objective of this
coursework will be to know and understand the setup, management,
liquidation and dispute resolutions of Joint-Stock Company (Public) (SAOG)
and
Joint
Venture
(JV)
Commercial
Companies
within
the
business
shall be personally liable towards such third party for the damages caused
thereby.
The
Joint-stock
Company
shall
not
be
established
without
awards because Oman is a member of the 1958 New York Convention on the
Enforcement of Foreign Arbitral Awards. In practice, this means that the
parties may choose arbitration as a means of settling disputes arising under
the agency agreement outside of Oman, and subject to recognized rules of
arbitration and conciliation, such as the International Chamber of Commerce
in Paris, the London Court of International Arbitration in London, etc. Having
a dispute decided by one or more arbitrators chosen by the parties would
certainly be more beneficial to the foreign principal and devoid of the delays
and politics of home court advantages for Omani agents. Under the New
York Convention, any such award would be enforceable in Oman. Any
Company to which the provisions of the preceding paragraph apply, and
which fails to abide by such provisions within the one year period specified
for such Company, shall be unlawful and may be dissolved and liquidated at
the end of the said period pursuant to an application submitted to the
Authority for the Settlement of Commercial Disputes by the Minister of
Commerce and Industry or any other person.
Conclusion
While concluding my words I would very much like to state that for doing
business in Oman, it is necessary for any foreign individual, partnership or
company to comply with laws governing foreign business activity; in
particular, the Foreign Capital Investment Law. There is no such thing as an
off-the-shelf company in Oman. Every firm must be specifically incorporated
and is subject to express authorization regarding foreign investors. This is
neither a simple nor a quick process and requires a significant amount of
documentation. There are several options available to a business looking to
establish a presence in Oman. The most appropriate entity will generally
depend on the size of the business, the individual needs of the parties
involved, the administrative burden the business is prepared to undertake
and the desired shareholder base of the business. As for the any SAOG
company in Oman is concerned its shares are listed on the MSM and are
freely transferable. The minimum capital for an SAOG is RO2m. As would be