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  • Part IX — Part IX — Holding Company

    • Article (298)

      A holding company is a company, the purpose of which is to own shares in Bahraini or foreign joint stock companies and to own shares or stakes in Bahraini or foreign limited liability companies, or to participate in the establishment of such companies and to manage them and provide loans thereto and guarantee them before third parties.

    • Article (299)

      A holding company must own more than half the capital of the affiliated company. It may take one of the following forms:

      i— A joint-stock company
      ii— A limited liability company
      iii— A single person company

      The phrase (Holding Company) shall appear in all documents, notices, correspondence and other documents issued by the company besides its commercial name.

    • Article (300)

      The affiliated company shall not own shares or stakes in the holding company, and the holding company shall appoint its representatives on the boards of directors of the affiliated companies in proportion to its holdings or as agreed upon with other shareholders or partners in the affiliated companies.

    • Article (301)

      The purposes of a holding company shall be:

      i— To manage its affiliated companies or to participate in the management of other companies in which it has shares, and to provide the necessary support for such companies.
      ii— To invest its funds in shares, bonds and other securities.
      iii— To own real estate and other assets necessary for undertaking its activities within the limits permitted by law.
      iv— To offer loans, guarantees and financing to its affiliated companies.
      v— To own industrial property rights including patents, trade and industrial marks, concession and other intellectual rights, and to use and lease them to its affiliated companies or to other companies.

    • Article (302)

      A holding company shall be established in one of the following methods:

      i— The establishment of a company the objectives of which shall be confined to one or all of the activities provided for in the foregoing article or by the establishment of affiliated companies or by owning shares in joint-stock companies or stakes in limited liability companies to undertake these objects.
      ii— The amendment of the purposes of an existing company to become a holding company in accordance with the provisions of this law.

    • Article (303)

      A holding company shall prepare at the end of each financial year an aggregated balance sheet and profit and loss accounts for it and all its affiliated companies together with the notes and statements thereon in accordance with the international accounting principles.

    • Article (304)

      The holding company shall be subject to the provisions regulating the company which it has taken as its form as well as its provisions set out in this law to the extent that they do not conflict with the provisions of this Part.