Circular Regarding Amounts Deposited for Company Capital Accounts at Establishment No. 769/4/2/10 dated 2009/1/14

In the Name of Allah, the Most Gracious, the Most Merciful

[Logo of the Central Bank of Jordan]

Number: 769/4/2/10
Date: 1/1/1430 AH
Corresponding to: 14/1/2009 AD

Circular to Licensed Banks

Greetings,

It has come to our attention that some individuals are opening accounts with certain banks operating in the Kingdom and depositing amounts for the company capital account at the establishment stage. This is done with the aim of obtaining a submission certificate from the Companies Control Office for the purpose of completing the company registration, in accordance with the provisions of Article (59/b) of the Companies Law. Subsequently, these individuals withdraw the deposited amounts in the account, or part thereof, or use the same amounts to register other companies, thereby violating the text of Article (59/c) of Companies Law No. (22) of 1997 and its amendments. This article stipulates that "it is not permissible for the bank where any amounts are deposited for the company capital account under establishment to return them, except after presenting a certificate from the Controller confirming the withdrawal of the company establishment. This provision applies in the event of any increase in the company capital."

We request your confirmation of the necessity to comply with the provision of the aforementioned Article, and to instruct all your branches operating throughout the Kingdom to continue adhering to the provisions of Compliance Monitoring Instructions No. (33/2006) dated 26/12/2006.

Please accept our highest regards,

The Governor
Dr. Amieh Salah Touqan

Form (1/1/10-18)
P.O. Box 37 - Amman 11118 Jordan • Phone 4630301 • Fax 4638889, 4638624 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo