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Merger and Acquisition (M&A) in Amman, Hashemite Kingdom of Jordan, follows guidelines stipulated in the Jordanian Companies Law No. 22 of 1997 and its amendments. These laws dictate the procedures for the amalgamation of companies, and divisions of assets and liabilities amongst different entities. Jordanian law ensures fairness and safeguarding of shareholder rights during any M&A activity.
Retaining legal representation during M&A transactions is crucial. You may require a lawyer to draft and review contracts, ensure compliance with local M&A laws, identify potential legal risks, and facilitate negotiations. Furthermore, legal advice is essential when understanding complex regulatory requirements, assessing potential antitrust issues, and ensuring that all disclosure obligations are met.
The Jordanian Companies Law governs M&A activities in Jordan. There are specific rules regarding the permission required from shareholders, the transferral of staff, and the assignment of contracts and assets. Legal scrutiny is particularly rigorous to ensure that companies are not merging or acquiring to create a monopoly or eliminate competition. The law also dictates the procedures for the resolution of any disputes that might arise from M&A transactions.
Yes. As per Jordanian Companies Law, corporate decisions of this magnitude, such as mergers or acquisitions, require the endorsement of the company's shareholders.
Engaging a legal counsel familiar with Jordan's competitive laws is a common solution to avoid potential antitrust issues. The counsel would oversee the entire transaction to ensure fair business practices are maintained and that the merger does not harm market competition.
Yes, foreign companies can acquire a majority stake or complete ownership of Jordanian companies.
The jurisdiction of disputes is typically identified in the merger or acquisition agreement. It might either be settled in Jordanian or international courts based on the involved parties' preference.
Non-compliance can lead to penalties, fines, legal disputes, and in some instances, prevention of further business in Jordan.
The Jordanian Companies Control Department and the Companies General Controller are resources providing information and oversight on M&A activities in Jordan. The Jordanian Bar Association can provide contact details for lawyers specializing in M&A law.
If you require legal assistance in an M&A process in Jordan, consider hiring a local lawyer who understands the Jordanian business climate and M&A laws. Compile all relevant company documents and be ready to provide them to your lawyer. It's essential to remain open and cooperative to ensure a smooth and successful M&A process.
