Business of Media


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This is a sample of a course that I created from scratch for the Communications department in a Gulf Region College. The course was specific to the UAE.

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Business of Media

  1. 1. Business Side of Media Identify media organizational structures and understand basic economics (supply and demand, etc) as it affects communications industries
  2. 2. <ul><li>Sole Trader </li></ul><ul><ul><li>businesses in which there is one owner </li></ul></ul><ul><ul><li>He/she is solely responsible for all of the obligations of the business </li></ul></ul><ul><li>Company </li></ul><ul><ul><li>A contract in which two or more persons agree to perform a profit making economic activity </li></ul></ul>
  3. 3. <ul><ul><li>1. General Partnership </li></ul></ul><ul><ul><li>2. Public Joint Stock Company </li></ul></ul><ul><ul><li>3. Private Joint Stock Company </li></ul></ul><ul><ul><li>4. Joint Venture </li></ul></ul><ul><ul><li>5. Limited liability Company </li></ul></ul><ul><ul><li>6. Branch of a foreign company (pvt) </li></ul></ul><ul><ul><li>7. Simple limited Partnership </li></ul></ul><ul><ul><li>8. Partnership with shares </li></ul></ul>
  4. 4. <ul><li>formed by two or more UAE Nationals </li></ul><ul><li>foreigners cannot be part of a GP </li></ul><ul><li>no minimum legal amount of capital required </li></ul><ul><li>partners can put in as much as money as he/she wants </li></ul><ul><li>partners agree on how the company is to be managed and how the profit is to be shared between </li></ul>
  5. 5. <ul><li>each partner in a GP is fully liable for all debts and losses of that business </li></ul><ul><li>if one partner cannot pay - the other partner(s) must pay for everything </li></ul><ul><li>courts can take other non-business assets (e.g. land. cars) to pay for these liabilities </li></ul>
  6. 6. <ul><li>formed when large amounts of capital are required (e.g. building a resort hotel) </li></ul><ul><li>money is obtained from members of the public </li></ul><ul><li>10 or more foundation shareholders (people, or other companies, who start the company) are required </li></ul><ul><ul><li>  </li></ul></ul><ul><ul><li>  </li></ul></ul>
  7. 7. <ul><li>foundation shareholders may hold a maximum of 35% of the shares </li></ul><ul><li>while 65%, or more, of the shares will be held (bought) by the public </li></ul><ul><li>any company that involves the government must be a PJSCo. </li></ul>
  8. 8. <ul><li>any bank, insurance company or other financial investment company must be a PJSCo. </li></ul><ul><li>a minimum of 10 million dirhams is required to start a PJSCo. </li></ul><ul><li>foreigners may hold some of these shares subject to the usual rule on national ownership </li></ul>
  9. 9. <ul><li>a Board of Directors runs a PJSCo. </li></ul><ul><li>the Board of Directors are elected by the shareholders. </li></ul><ul><li>a PJSCo. must have:  </li></ul><ul><ul><li>Memorandum of Association & Articles of Incorporation: these are the rules about how the company is to be run and the type of business it is to conduct. </li></ul></ul>
  10. 10. <ul><li>  </li></ul><ul><li>each shareholder is only liable for debts and losses of the PJSCo. to the value of the shares held </li></ul><ul><li>shares may be bought and sold according to the wishes of the shareholder. </li></ul><ul><li>the prices of the shares are listed daily by the Stock Exchange of the UAE </li></ul>
  11. 11. <ul><li>similar to a PJSCo. except that none of the shares are sold to the public </li></ul><ul><li>all shares are sold to 'private' parties (people and other companies) </li></ul><ul><li>these companies usually have PVT shown at the end of their trading name (e.g. EPPCO PVT). </li></ul><ul><li>three or more foundation shareholders are required </li></ul>
  12. 12. <ul><li>a minimum of 2 million dirhams is required to start a PVT company </li></ul><ul><li>the foundation shareholders may hold all of the shares </li></ul><ul><li>foreigners may hold some shares </li></ul>
  13. 13. <ul><li>rules on management are the same as for a PJSCo. </li></ul><ul><li>shares may only be traded (bought and sold) according to the rules given in the Articles of Incorporation & Memorandum of Association </li></ul>
  14. 14. <ul><li>profits will also be shared according to the rules given in the Articles of Incorporation & Memorandum of Association </li></ul><ul><li>each shareholder is only liable for debts and losses of the PVT Co. to the value of the shares held </li></ul>
  15. 15. <ul><li>a partnership agreement between two or more parties for a specific purpose (e.g. constructing a shopping mall) </li></ul><ul><li>quite often used when one of the parties is a foreign company that will complete the work of the project </li></ul><ul><li>JVs are usually dissolved (cancelled) after the completion of a project </li></ul>
  16. 16. <ul><li>local party or parties (person or company) bear all of the liability for debts and losses of the venture </li></ul><ul><li>the foreign party is liable to the value of its investment (how much money. or other assets. it puts in) </li></ul><ul><li>management and profit sharing of the JV will be according an agreement made between the parties </li></ul>
  17. 17. <ul><li>most common small company type </li></ul><ul><li>they may have between 2 and 50 shareholders </li></ul><ul><li>foreigners can be shareholders </li></ul><ul><li>liability for debts and losses is limited to the value of the shares held </li></ul>
  18. 18. <ul><li>minimum capital amount of Dh150,000 (Dh300 000 in Dubai) is required to start an LLC </li></ul><ul><li>an LLC is managed by a Board of Directors and must have a Memorandum of Association and Articles of Incorporation </li></ul>
  19. 19. <ul><li>companies which are established and registered outside the U.A.E. </li></ul><ul><li>can apply for a branch office in the U.A.E. </li></ul><ul><li>the Ministry of Economy and Commerce must agree </li></ul><ul><li>company must sign an agreement with a UAE citizen or (Local Service Agent) </li></ul>
  20. 20. <ul><li>small company size </li></ul><ul><li>financial agreement between 2 or more national partners </li></ul><ul><li>no minimum capital outlay </li></ul><ul><li>title or name of the business must use the partner’s names </li></ul><ul><li>partnership agreement must be written in Arabic </li></ul>
  21. 21. <ul><li>Same as limited partnership except </li></ul><ul><li>shares issued to public </li></ul>