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  • Resolution No. (1) 1993 in Respect of the Registration of Closed Bahraini Jointstock Companies on the Bahrain Stock Exchange

    The Chairman of the Exchange's Board of Directors:

    After perusal of Decree Law No. (28) of 1975, in respect of issuance of the Commercial Companies Law and its amendments,
    And Decree Law No. (4) of 1987, pertaining to the establishment and organization of the Bahrain Stock Exchange,
    And the Minister of Commerce and Agriculture's Resolution No. (13) of 1988, concerning the issuance of the Exchange's Internal Regulation,
    And upon the submission of the Director of the Bahrain Stock Exchange,
    And pursuant to the approval of the Exchange's Board of Directors,

    RESOLVED AS FOLLOWS:

    • Article One

      The Bahrain Stock Exchange may register the Bahraini closed joint stock companies, subject to the following conditions:

      1. The company should have complied with all provisions relating to the closed joint stock companies, as prescribed in Decree Law No. (28) of 1975, in respect of the Commercial Companies Law and its amendments.
      2. That the paid-up capital shall not be less than BD200,000, or its equivalent in other currencies. Shares in excess of BD200,000 shares shall be at least 50% paid up.
      3. The price of the shares issued by the company shall not be less than the paid percentage of the nominal value of the shares.
      4. The company should issue the annual financial reports and final accounts within six months from the end of the company's financial year.
      5. If the company undertake activities outside the State of Bahrain, it should appoint a registrar and transfer in Bahrain.
      6. The company's financial position should be sound in terms of its assets, liquidity, stability of its financial structure and efficiency of performance.
      7. The company should have achieved profits during the last two years preceding the submission of the application, or for three years during the last five years.
      8. The company should undertake to comply with the terms of the closed Joint stock companies Registration Agreement (enclosed).
      9. Any other conditions that may be issued from time-to-time by the Exchange's Board of Directors.
      10. The Exchange's Board of Directors may exclude some of the previous conditions, provided that the company should complete its registration procedures and conditions.

    • Article Two

      The applications for the registration of the Bahraini closed joint stock companies should include the following:

      1. Formal application for the registration of the company on the Bahrain Stock Exchange, to be issued by the chairman or the managing director of the company, along with the approval of the company's board of directors at an extraordinary general meeting.
      2. Information and financial statements of the applicant company's for the preceding five years.
      3. A list of the information and statements required by the Exchange.

      The management of the Exchange shall respond to the application within a maximum period of 45 days from the date of application.

    • Article Three

      The Bahrain Stock Exchange shall publish the shares offered for sale, the selling time for the remaining shareholders and the others and the required price. The Director of the Exchange shall issue special resolution to define such timing.

    • Article Four

      The regulations and resolutions of the Bahrain Stock Exchange shall be applied to Bahraini closed joint stock companies, and the Director of the Exchange shall issue the instructions relating to the execution of the resolution of the Exchange's Board of Directors in respect of regulating the trading of such companies shares and prescribe for the basics and procedures for setting the commission.

    • Article Five

      The closed joint stock companies should undertake to provide all information and particulars required by the Exchange. Such information and particulars shall be factual and conformant with company's position, subject to the companies responsibility, and in accordance with the Exchange's appropriate resolution. The Exchange shall not bear any kind of responsibility for accepting the trading of the company shares. The Exchange shall have the right to verify the correctness of any information and particulars submitted by these companies.

    • Article Six

      The Director of the Bahrain Stock Exchange shall implement this Resolution, which shall come into effect from the date of its publication in the Official Gazette.

      The Minister of Commerce & Agriculture
      and Chairman of the Board of Directors
      of the Bahrain Stock Exchange

      Issued on 7th Shawal 1413 H
      Corresponding to 29 March 1993