Overview

When establishing a limited-liability company, the relevant founders generally pool their resources and funds into the capital of a company which is then divided into shares. These shares represent the ownership of the company, meaning that the control of a given person/party over the company in question grows in proportion to the value of the company shares that they hold.[1] Pursuant to Law No. 40 of 2007 on Limited-Liability Companies, as amended by the Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “Law 40/2007”), shares also extend several rights to their holders, in particular, the right to receive dividends, as well as to attend and vote at general meetings of shareholders.[2] As a result, shares play a critical role in the management of a given company.