MANAMA: Industry and Commerce Minister Dr. Hassan Fakhro expressed his appreciation to both Houses of the Parliament for passing the amended law commercial companies provisions which was voted by Shura Council on Monday, June 16, 2014, which comes in activating economic axis of the National dialogue in regard modernizing law systems and trade legislation in line with Bahrain Economic Vision 2030 and to enhance competitiveness of the national economy.
It is noteworthy that the most important features of the law are as follows to cancel the minimum capital of commercial companies, and give company’s founder the right to determine capital; legal controls limit requests challenge from establishing non-serious commercial companies and prevent harmful practices to the commercial sector; cancel the restrictions on converting closed joint-stock companies to public joint stock companies; cancel some restrictive conditions for investment and contrary to commercial movement requirements as a condition that all shareholders in public companies should hold Bahraini nationality or GCC citizens; require the founders to register not less than 10% of the company’s capital; regulate stock trading, registration and deposit and transfer of ownership and to offset and settle under the law of Bahrain Central Bank; give the companies the right to regulate hold any of the scheduled meetings in accordance to provisions of the law by any means of electronic or telephone communication; cancel restrictions that hamper foreign companies and give the opportunity to set up branches or offices or agencies without the requirement of Bahraini merchant and the publication in the official newspaper has been reduced from sixty days to fifteen working days to avoid waiting time which hinder the completion of legal procedures without justification.