Venture Capital Company in Jordanian Legislation

Authors

  • Hamza Ali Al-Harbi Author
  • Prof. Dr. Abdulwahab Abdullah Al-Maamari Author

DOI:

https://doi.org/10.61212/jsd/51

Keywords:

The company, venture capital, shares, company management

Abstract

Venture capital is of great importance in the capital market, and it is one of the means of supporting economic growth. Venture capital institutions play an active role in financing institutions, providing them with funds, experience, and modern methods of management and organization, and merging their funds with the funds of funded institutions, and this is what achieves stimulating financing for these institutions. Because it rises towards the horizon and achieves significant profits, unlike the method of debt financing, which is fraught with repayment risks, interest rates, and other burdens such as the problem of guarantees and others.

The Jordanian Companies Law of 1997, stipulates in Article (7) on venture capital companies, where it is stated that they are : "Companies that are established with the intention of direct investment, or establishing funds to contribute to the capital of companies, with high growth potential and whose shares are not listed in the financial market in exchange for obtaining returns upon the sale of its contribution, or its shares in the capital of the investee company. This research seeks to define the legal system for this type of company, using the descriptive approach and the analytical approach, with the aim of reaching useful results and recommendations in this regard.

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Published

2022-06-01

How to Cite

Venture Capital Company in Jordanian Legislation. (2022). Journal of Scientific Development for Studies and Research (JSD), 3(8), 71-86. https://doi.org/10.61212/jsd/51

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