2 — 2 — Reducing the Capital
Article (132)
The company may, by a resolution of the extraordinary general assembly, reduce its capital if it is more than the company needs or if the company has sustained a loss and decides to reduce the capital to the actual value that exists.
The resolution reducing the capital shall be issued only after reading the reports of the board of directors and the auditor on the reasons for the reduction, the obligations of the company and the effect of such reduction on these obligations.
A copy each of the reports of the board of directors and the auditor shall be forwarded to the Ministry of Commerce and Industry.
Article (133)
Capital shall be reduced by one of the following means:
i— Reducing the nominal value of the share.ii— Canceling a number of shares equal to the amount of the decided reduction.Article (134)
Capital reduction shall be made, if it is more than the company needs, by reducing the nominal value of the shares, either by giving back a part of it to the shareholders equal to the decided percentage of reduction or by discharging them of the unpaid installments of shares' value in proportion to the decided reduction. If the reduction is due to the company's losses, a number of shares equal to the decided amount of reduction shall be cancelled. In all cases the nominal value of the shares must not be less than the minimum value stipulated by law.
Article (135)
If the capital reduction is made by way of canceling a number of the company's shares, a number of shares owned by each shareholder shall be cancelled in proportion to the percentage of capital reduction, provided that the shareholder shall not be deprived of sharing in the company. The company shall, within one month from the date of cancellation, redeem the cancelled share certificates from the shareholders and destroy them and enter the same in the shareholders' register and notify the Ministry of Commerce and Industry and the Bahrain Stock Exchange accordingly.
Article (136)
Any resolution reducing the company's capital shall be entered in the Commercial Registry in accordance with the provisions of the registry law and be published in the Official Gazette and in one of the local daily newspapers.
Article (137)
Reduction shall not be effective against the creditors who make an objection thereto and submit their documents within sixty days from the publication date in the Official Gazette unless they are paid their due debts or have been provided with adequate guarantees for the payment of their deferred debts.
