Sun, 04 October 2020
Bahraini Businessman, Yaqoob Al Awadhi, has stressed the significance of the Cabinet’s approval of a draft law, in a session held during September, amending some provisions of the current Commercial Companies Law promulgated by Decree-Law No. 21 of 2001 based on the recommendation by the Government Executive Committee chaired by HRH the Crown Prince, Deputy Supreme Commander, and First Deputy Prime Minister.
The amendments include the introduction of new benefits to further strengthen the investment ecosystem, help companies raise capital, enhance the rights of minority investors, permit the creation of not-for-profit companies, and regulate mergers and acquisitions. This is in addition to amendments aimed at improving the regulatory environment for companies and keeping pace with global developments.
“A merger or acquisition among Bahraini companies has become an absolute necessity in light of the unprecedented challenges posed by the COVID-19 pandemic, as they represent a method of restructuring that grants an opportunity for companies to prevent collapse and bankruptcy. Furthermore, they represent an ideal solution for companies threatened by bankruptcy, and contribute to reducing costs of production and services on the one hand and raising competitiveness and profitability on the other hand,” said Mr. Al Awadhi.