The Jordan Securities Commission has issued new instructions concerning procedures to be taken vis-à-vis companies listed on the Amman Stock Exchange, whose accumulated losses reach %50 or more of their paid-up capital. The instruction specify three categories of companies, those that accumulate losses between 50%-75% of their paid up Capital; those that accumulate losses between 75%-100% of their paid up Capital; and those that accumulate losses more than 100% of their paid up Capital.
Procedures to be undertaken focus on an intensification of the disclosure process, the provision of re-structuring plans and in certain cases suspending trading in company’s shares.
According to the JSC, these measures will increase the transparency, efficiency and fairness in the local capital market.
Please find below link to these instructions (in Arabic):
http://www.jsc.gov.jo/News/Nws_NewsDetails.aspx?Type=P&lang=1&Site_ID=2&NewsID=669