Shura member calls for overhaul of Reorganisation & Bankruptcy Law

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Ali Al-Aradi, a member of Bahrain's Shura Council, has called for a comprehensive overhaul of the Kingdom’s Reorganisation and Bankruptcy Law, advocating reorganisation as its primary focus.

He emphasises the need for a thorough evaluation and strategic adjustments to ensure the law remains relevant and effective amidst evolving economic conditions.

While recognising the law's advantages, Al-Aradi highlights practical challenges and proposes addressing them through targeted training and minor legislative refinements.

He stresses that activating the law through law firms or consulting offices should prioritise reorganisation over bankruptcy.

Regarding potential loopholes in the current law, Al-Aradi clarified, "These are not loopholes per se, but rather areas where the law needs refinement and amendments based on practical experience.

When the law was initially enacted, it lacked precedent, highlighting the necessity for specific adjustments."

His proposals include establishing a registry to monitor business owners benefiting from bankruptcy protections and prohibiting them from assuming leadership roles in other companies to prevent abuse.

Al-Aradi also proposed that the law should remove the criminal aspect from certain commercial practices, specifically those involving checks issued by companies undergoing reorganization.

He noted that fraudulent bankruptcy and related offenses are already covered by criminal law, requiring complaints to be filed with the appropriate authorities.