Constitutive Documents

A limited Liability Company's constitutive documents are its Statutes. Model Statutes have been issued by Ministerial Decree.

Share Capital

The minimum capital of Limited Liability Company is LE 50,000. Quotas, commonly referred to as shares, must be of equal value and cannot have a nominal value of less than LE 100. The capital must be fully paid in at the time of incorporation. Cash contributions are placed in a blocked bank account, which are then released upon the incorporation of the Limited Liability Company.

No share certificates are issued for Limited Liability Companies.

Number of Shareholders

Limited Liability Companies must have a minimum of two founding shareholders and a maximum of 50 shareholders. Shareholders may be natural persons or legal entities. Shares in Limited Liability Companies may not be offered to the public.

Purpose

A Limited Liability Company may not engage in insurance, banking, savings, deposit taking, investment funds.

Limited liability company also may not conduct securities brokerage ,merchandising and covering subscription to securities ,participating in the foundation of companies issuing securities or in increasing their capital, venture capital ,clearing and settlement in securities dealing or portfolio management activities.

Name

The name of a Limited Liability Company should refer to its activities and may include one or more of its shareholders' names.

Bonds

Limited Liability Companies may not issue bonds.

Transfer of Shares

Shareholders wishing to transfer their shares in a limited Liability Company must first offer them to existing shareholders, who have no month within which to purchase such shares on a pro rata basis.

The Statutes of a Limited Liability Company may prohibit any transfer of shares unless approved by the other shareholders.

Management

Limited Liability Companies are managed by one or more managers. A Limited Liability Company that has over 10 shareholders must establish a Supervisory Council with a minimum of 3 shareholders. Employee participation in management is not required.

Profits

Profits are required to be distributed to employees of a Limited Liability Company as and when the capital of the Limited Liability Company reaches LE 250,000. The rules governing such distributions are the same as those that apply to Joint Stock Companies.