Protection of the rights of old shareholders when increasing the capital of a joint stock company

Abstract

In order to protect the old shareholders and preserve their right to reserve funds when the capital of the joint stock company increases; the legislator created two legal mechanisms, the first related to the old shareholders by giving them priority in subscription in accordance with the principle of the right of preference in subscription, and the second related to the new shareholders by imposing the issuance premium in their right, in order to achieve balance and equality between the new shareholders and the old shareholders in the reserve funds.This study aims to know the meaning of these two mechanisms and the extent to which they achieve the desired purpose, according to an inductive analytical approach to the legal texts governing the provisions of increasing the capital of a joint stock company