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  • Part IV — Part IV — Associations in Participation

    • Article (56)

      An association in participation (joint venture) is a concealed company. It neither has a corporate entity nor is subject to publication procedures.

    • Article (57)

      The company's memorandum of association shall specify the Partners' rights and obligations and the manner in which the profits and losses are distributed among them as well as any other terms and conditions.

      The company shall not issue shares or tradable instruments.

    • Article (58)

      The company's memorandum of association may be proved by any means, including evidence and presumptions.

    • Article (59)

      Third parties shall have no legal connection in respect of the company's activities except with the partner or partners whom they have dealt with. The partners shall thereafter have recourse to each other in connection with the company's activities, their association with it and the dividend of each partner in the profits and losses as agreed upon in the company's memorandum of association.

    • Article (60)

      Notwithstanding the provisions of the foregoing article, a third party may insist on the company's memorandum of association if the company has dealt with him in this capacity.

    • Article (61)

      If the partner who is dealing with third parties is non-Bahraini, a Bahraini national shall sponsor him in these dealings.

    • Article (62)

      i— Each partner shall remain the owner of the share he has pledged unless otherwise agreed upon.
      ii— If the share is a specific asset and the partner who holds it has become bankrupt, the owner shall have the right to restore it from bankruptcy after paying his share in the company' losses. However, if the share is not specified, the owner shall have only to participate in the bankruptcy as a creditor with the remaining part after deducting his share in the company's losses.