MP backs new amendments to Bahrain's Commercial Law

TDT | Manama

The Daily Tribune – www.newsofbahrain.com   

MP Dr Sawsan Kamal said Bahrain has to put its eyes on achieving multiple objectives to maintain its competitiveness, and enhance its international rating, including obtaining credit, easing completion of contracts, protecting minority investors, facilitating the start of businesses, and settling insolvency cases.

This came in a statement she delivered yesterday during the weekly session of the House of Representatives, during which she shared her stance on the proposed Decree-Law No. 28 for the year 2020 with regards to amending several provisions of the Commercial Companies Law promulgated by Decree-Law No. 21 of 2001.

“In this regard, it becomes clear that the decree-law is the outcome of a long experience in the work of commercial companies in the Kingdom of Bahrain to contribute to strengthening the national economy by reducing the burdens of commercial cases referred to judicial arbitration, and enhancing the flexibility of companies, as well as the integration of some forms of commercial companies and provide wide options for the capital increase,” she said.

“We support the updates brought by this Decree-Law by adding three new ways to increase the capital, the first of which is converting loan bonds into shares; the second is converting debts into shares; and the third is providing in-kind shares to the company, in addition to the entry of Article 127 bis that facilitated the entry of a strategic partner. It has delayed any possible legal restrictions in its path with an additional option available to increase capital and move companies’ work.”

“The Decree-Law has eliminated some forms of commercial companies, such as the one-person company and the holding company, because it provided what would enable it to merge and practise its work within the form of the limited liability company,” she added.

She concluded: “On the other hand, we value the introduction of amendments to establish non-profit companies, which opens new horizons for the development of the third sector, represented by non-profit companies.

It is a social goodwill in which the community will be blessed with the revitalisation of NGOs, access to services and the availability of health and employment services institutions, and the availability of employment opportunities in companies providing sports, technological and other services. It is noticeable that many amendments were intended to give more clarity to some of the current articles, and to support them with regulatory clauses.”