The first article of the Resolution stipulates cancelling two clauses from Article No. (1) of the abovementioned resolution, in which the clause stipulating that the price of the shares on the market should not be less than the paid-up percentage of the nominal value of each share was cancelled. Another clause stipulating that the company should have achieved profits during the last two years preceding the submission of the application, or for three years during the last five years, was also cancelled.
“The amendment made by the Chairman of the Board of Directors of the bourse to the regulations and requirements of listing closed companies goes in line with BHB’s efforts to implement its comprehensive strategy which aims to develop all work aspects at the bourse and encourage listings,” Bahrain Bourse Director said.
The Director of the Bourse assured that this amendment, that states cancelling the requirement of achieving profits during the last two years preceding the submission of the application, or for three years during the last five years has been made taking into consideration one of the major listing requirements stipulating that the listed company should maintain financial soundness in terms of assets, liquidity, balanced financial structured and efficient performance, and that companies must abide by the rules and regulations of the Central Bank of Bahrain and Bahrain Bourse, especially those relating to disclosure and transparency that ensure that investors are continuously aware of the positions of listed companies.
“We hope that those amendments stipulated in the Resolution will encourage Bahraini shareholding closed companies or newly established companies to apply for listing on the bourse, and benefit from the facilities provided by the bourse concerning listing. The bourse will coordinate with the Central Bank of Bahrain to quickly finalize the approval procedures required for listing in order to encourage companies to list on BHB,” he added.
He said that BHB would approve and implement the new amendments on the listing requirements for shareholding closed companies applying for listing as of 25 December 2011.