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Bahrain - Claims could be made in Bahrain for money owed by foreign bankrupt companies, firms and establishments who have an office, property or asset in the kingdom.
Under amendments to the 2018 Bankruptcy Law, dues can be collected from the representative here rather than take the case to the country where the company, firm or establishment is based.
Justice
Other amendments include claiming money from inheritors or caretakers should the bankrupt businessman retire or die.
The changes are set to be debated and voted on during Sunday’s weekly session of the Shura Council and, if approved, it will be referred to the Cabinet to be drafted into a formal legislation and resubmitted to the National Assembly for a vote.
Shura financial and economic affairs committee vice-chairman Redha Faraj, who is behind the proposal which his committee has supported, said the amendments would result in faster settlements and justice.
“We are looking into settling bankruptcy cases in a just manner that ensures the rights of those who are owed money whether from a foreign entity or even local businessmen who go bankrupt or retire,” he said.
“The current law doesn’t address these issues clearly as it leaves them open to interpretation with cases involving foreign companies being settled where they are based rather than Bahrain through their representative.
“The same with a businessman who leaves inheritance or transfers money to his family members before declaring bankruptcy and retiring while he owns people money.”
The 195-article law covers private individuals and businesses, but cases relating to financial institutions and insurance companies will be overseen by the Central Bank of Bahrain (CBB).
Those who deliberately hide money to claim bankruptcy, exaggerate debts, deliberately exclude creditors from bankruptcy documents presented to courts or provide false information will face up to two years in jail and a fine up to BD100,000.
Others who reach secret deals with those seeking bankruptcy status, or provide false information about a debtor, will face the same punishment.
Meanwhile, a board chairman or executive whose negligence or dishonest behaviour results in bankruptcy will be fined up to BD100,000.
The chamber will also vote on a royal decree introducing the new 2019 Settlement of Dispute Resolutions.
It gives alternatives to existing dispute resolution mechanisms through settlers in different cases – criminal, Sharia, commercial and civil – in a bid to speed up cases, while it would be open for Bahrainis and non-Bahrainis to apply as settlers.
The Bahrain Chamber for Dispute Resolution had said earlier the law will speed up dispute resolution while also saving time and money.
Another royal decree amending punishments imposed on civil servants found guilty of violations will also be put to a vote.
This means these public servants will now face only pay cuts – but no suspension from work.
Violations
The decree amending the 2010 Civil Service Law was issued in October last year during the National Assembly’s recess.
Under the amended law, the deductions have been changed from a maximum 10 days to three months during the year – with cuts being just for 10 days every month.
In addition, a unified committee will probe the violations, with the employee concerned not being referred to various panels.
The Shura Council members will also vote to insist on their amendments to the 2002 Fishing Organisation, Catching and Protection Law that would grant a three-year licence at once for the price of three rather than a three-year licence for the price of one year as approved by MPs.
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