Commercial Companies Law 2001: Contents

Commercial Companies Law 2001
Commercial Companies Law
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Location: Commercial Companies Law 2001 > Commercial Companies Law > Part V — Joint-stock Company > General Provisions > Article (64)
  • General Provisions

    • Article (63)

      A joint stock company consists of a number of persons who subscribe in it by way of negotiable shares. They shall be liable for the company's debits and obligations only to the extent of the value of their shares.

    • Article (64)

      All shareholders in a general joint stock company shall be of Bahraini nationality, without prejudice to the right of the Golf Cooperation Council's nationals to establish and own joint stock companies in Bahrain.

    • Article (65)

      Subject to the provisions of this law, Bahraini public joint stock companies may be founded — by a decision of the Minister of Commerce and Industry in collaboration with the relevant minister — with foreign capital or expertise in accordance with the percentages determined by the Minister of Commerce and Industry.

      No dealing in the stocks and shares representing the foreign capital shall be permitted in any way for three years from the date of registering the company in the Commercial Registry unless such dealing is done only among the persons representing the foreign partner.

    • Article (66)

      Every Joint Stock Company shall have a special commercial name indicating its objectives.

      Such name shall not be derived from the name of a natural person unless the objective of the company is to invest a patent registered in the name of that person, or unless the company acquires, upon its incorporation or thereafter, another commercial establishment and uses the name of such establishment as its own. The name of the company shall — whenever mentioned — be followed by the phrase (A Bahraini Joint-Stock Company).

    • Article (67)

      The company may change its name by a resolution by the extraordinary general assembly. The new name shall be registered in the Commercial Registry in accordance with the provisions of law and be published in the Official Gazette and in one of the local daily newspapers.

      The change in the name of the company shall not affect its rights or obligations or legal proceedings taken by or against the company.

    • Article (68)

      i— Except for the case of representing the State in a public company, a public servant shall not in his personal capacity occupy a public position and be at the same time a board member of a joint-stock company or participate in the incorporation thereof or do any paid or unpaid job for it whether permanent or occasional.
      ii— The violator shall refund all that he has received from the company to the state without prejudice to the administrative penalties.

    • Article (69)

      i— A board member of a public organization or entity shall not, in his personal capacity or on behalf of a third party, be a board member of a joint-stock company or act as a manager thereof or undertake permanent or occasional work or consultancy for it if one of its objectives is to exploit any public utility that exists in the jurisdiction of the board of which he is a member, or that is linked with it by a contract of public works or monopoly.
      ii— The member shall be deemed resigned from the company as soon as he is elected to the board. The defaulter shall refund what he has received from the company to the State's treasury.

    • Article (70)

      A decree by the Minister of Commerce and Industry shall regulate the Joint stock companies of variable capital.

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