Article one

Economic activity in mass society is based on partnership, collective ownership, people’s socialism, and based on individual or collective effort.

It is permissible to participate with money or knowledge or both.

second subject

Individuals and legal persons may practice economic activities in the fields of production and distribution of goods and provision of services, such as education, health, agriculture, industry, trade, tourism, transportation, real estate, finance, as well as professional and craftwork, such as law, medicine, engineering, accounting, notarization of contracts and papers, financial, economic, legal, and trade advice. blacksmithing, and other activities.

Article 3

The economic activities stipulated in Article Two of this Law shall be practiced in one of the following ways:

contribution companies.

Public institutions and companies.

Partnerships.

family activity.

individual activity.

The establishment of institutions and companies, as well as joint-stock companies, shall be subject to the provisions and controls stipulated in this law.

Article 4

The deed of establishment of the joint-stock company determines its capital, the number of shares that have the authority to decide during the meeting of the company’s general assembly, and the other shares that do not have such power. The deed of establishment also specifies how the shares are traded, all subject to the conditions and controls contained in this law.

Article 5

The value of a share in joint-stock companies should not exceed one hundred dinars, and the shares that have the authority to take the decision and their circulation shall be owned by the following controls:

What an individual owns in joint-stock companies, with a capital of not less than half a million dinars, should not exceed 12% of the total number of shares.

What an individual owns in joint-stock companies whose capital exceeds half a million dinars should not exceed 10% of the total number of shares, and what an individual owns, as well as his assets and branches, may not exceed 15% of the total shares.

What an individual owns in joint-stock companies whose capital exceeds one million dinars and two million dinars does not exceed 8% of the total number of shares, and what an individual owns, as well as his assets and branches, may not exceed 10% of the total number of shares.

What an individual owns in joint-stock companies whose capital exceeds two million dinars shall not exceed 5% of the total number of shares, provided that the joint-stock company stipulated in this paragraph may not be established except through public subscription.

The percentages specified in the previous paragraphs are considered to be maximum limits that automatically decrease with the increase in the number of applicants for subscription, and preference is given to those who apply for subscription to non-shareholders in other companies.

Sixth Article

A shareholder may delegate someone other than the managers and employees of the company to take his place during the general assembly meeting, provided that the delegation is in writing.

The agent does not have the authority to decide by the provisions of the previous paragraph, except within the limit of 15% of the total number of shares that have the authority to make a decision.

Article 7

Companies established by the provisions of this law operate based on economic efficiency, and the provisions of Law 15 of 1981 regarding the salary system for national employees in the Socialist People’s Libyan Arab Jamahiriya do not apply.

Eighth Article

Individuals, productive families, partnerships, joint-stock companies, and other legal persons may own buildings as well as lands, usufruct ownership to practice the licensed activity by the provisions of this law and the regulations issued pursuant thereto.

Article 9

By a decision of the General People’s Committee, establishments owned in whole or in part by the state or public legal persons that practice the activities stipulated in Article Two of this law may be owned. It loses its general integrity once ownership.

Article 10

The General People’s Committee shall determine the nominal value of the share or stake in the Kingdom’s establishment by the provisions of the previous article. It shall also determine the maximum limit of shares or shares that a single person can own in terms of shares or shares in a manner that ensures the achievement of the principle of equal disk and broadening the base of ownership.

Article eleven

The state and commercial banks shall provide the establishments that are established or owned by the provisions of this law the facilities and assistance that enable them to carry out their activities, in particular, the following:

Loans and credit facilities.

Enabling it to import what it needs of equipment, spare parts, and operating supplies by opening credits within the limits of the foreign exchange budget.

Precedence in the usufruct of the lands necessary to carry out its activity.

Article 12

The Kingdom facility is exempted by the provisions of this law from income tax on the profit that is reinvested, provided that it does not exceed 80% eighty percent of the total taxable profit. A decision of the General People’s Committee may exempt the Kingdom entity from income tax, provided that it does not exceed three years. The decision was issued to exempt the classifications of the various activities and the bases and rules related to the implementation of the provisions of this article.

Article thirteen

Every individual has the right to dispose of his production for consumption, saving, and investment.

Article 14

A company that is owned or established by the provisions of this law is managed by a popular committee chosen by the owners, and the articles of association specify its competencies and powers within the limits of the law.

Article 15

The establishment shall follow the Kingdom by the provisions of this law, the administrative and financial systems related to its management and management of its affairs, without being restricted by the legislation to which it was subject before ownership.

Article 16

Except for what is stipulated in this law, the provisions of the legislation regulating economic activities in force at the time of the issuance of this law shall apply.

Article 17

The General People’s Committee issues the executive regulations and decisions of this law based on the committees’ presentation General Popularity Competent Quality.

Article 18

Every provision that violates the provisions of this law shall be repealed, provided that the regulations and decisions related to the practice of economic activities in force at the time of its issuance shall continue to be in force until an equivalent is issued or canceled.

Article 19

This law shall be published in the Official Gazette and the various media, and shall come into force from the date of its publication.

General People’s Congress

Issued on: 4 Rabi’ al-Awwal 1402
Corresponding to 2 September 1992 AD