|10 February, 2020

Companies Law change backed by Bahrain's Shura Council

The committee said the amended law would bolster corporate transparency and prevent negative fallouts due to conflicts of interest

Photo used for illustrative purpose. Members of parliament are seen during a closed door session during weekly parliament session in Manama.

Photo used for illustrative purpose. Members of parliament are seen during a closed door session during weekly parliament session in Manama.

REUTERS/Hamad I Mohammed

Bahrain - A proposal to allow representatives of stakeholders in companies to attend general assembly meetings on their behalf with a written authorisation has been approved by the Shura Council.

The proposed amendment to the 2001 Commercial Companies Law was first tabled in the chamber last year and sought to allow business partners to deputise non-members of the executive management to attend general assembly meetings on their behalf.

It was presented by five members, led by financial and economic affairs committee chairman Khalid Al Maskati, and was approved by MPs earlier last month following backing from the Industry, Commerce and Tourism Ministry as well as the Bahrain Chamber for Commerce and Industry.

The committee said the amended law would bolster corporate transparency and prevent negative fallouts due to conflicts of interest.

Meanwhile, Shura Council vice-chairwoman Jameela Nusaif, who also backed the proposal, said it needed to be reworded for the sake of clarity.

“We fully support any law or proposal that helps remove obstacles, especially in commerce,” she said. “I only believe the phrasing needs to be reworked to be more clear.”

The proposal was unanimously approved yesterday and will now be sent for ratification by His Majesty King Hamad.

Council chairman Ali Saleh Al Saleh postponed other matters on the agenda for next week’s session.

This includes an amended law on penal procedures which aims to develop a criminal policy to protect society and maintain public order and promote reconciliation with victims.

The draft amended law also aims to reduce the burden of litigation and increase the criminal protection of society and people’s interests.

© Copyright 2019 www.gdnonline.com

Copyright 2020 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Commercial