Central Bank of Bahrain Law: Contents

Central Bank of Bahrain and Financial Institutions Law 2006
Central Bank of Bahrain and Financial Institutions Law 2006 (English)
Central Bank of Bahrain and Financial Institutions Law
Part 10 Insolvency of the Licensee, and Placing it Under Administration and Compulsory Liquidation
Chapter 3 Compulsory Liquidation
Article (145) Decision on the Petition of Compulsory Liquidation
Skip to Content
Whole SectionText only Print Print Manager Link

Article (145) Decision on the Petition of Compulsory Liquidation

(a) The Competent Court may impose, during the hearings of a petition for compulsory liquidation, upon the relevant Licensee any measure it considers appropriate including extending the period of placing the Licensee under administration for more than two years and determining the terms and conditions in connection with such extension.
(b) The Central Bank, the officials of the Licensee and its shareholders and creditors may collectively or individually, have the right of intervention before the Competent Court during the hearings of the petition for compulsory liquidation of the Licensee..
(c) subject to the provisions of the law, the Central Bank may issue directives in connection with liquidation of the Licensees in general or liquidation of any specific category thereof, to be used as a guidance during the hearing of liquidation petition.
(d) The Court may order the compulsory liquidation of the Licensee under any of the two following circumstances:
1. If the Licensee proved to be insolvent
2. If compulsory liquidation is decisively proved to be a just and equitable action.
Where compulsory liquidation of a Licensee is ordered, the court shall appoint a liquidator and determine his fees under the guidance of the Central Bank with respect to this issue.

The fees of the liquidator and all other expenses of the liquidation shall be paid by the relevant Licensee. During liquidation hearings, the phrase "In Liquidation" shall be added after the name of the Licensee on all relevant correspondences.
 Versions
(1 Version)
 
Sep 7 2006 onwards
Back to top