Worth of the Draft law of Bankruptcy in boosting economic environment, highlighted at 10th session
18 Jun 2019
The 10th Regular Session of the State Council on Tuesday extensively discussed the Draft law of Bankruptcy and Insolvency, transmitted by the Council of Ministers, along with the report of the Economic committee of the Council.
The session chaired by H.E Dr. Yahya bin Mahfoudh Al-Manthri, Chairman of the Council was held in the presence of the honourable council members and its Secretary General.
The State Council Chairman extended warm welcome to the honorable members and hoped that the session would deliver positive outcome and prayed for the progress of Oman under the wise leadership of His Majesty Sultan Qaboos Bin Said.
Following this, he referred to the agenda and stated that the session would focus on discussing the Draft law of Bankruptcy and Insolvency.
Further, on he added that the 11th session would discuss the draft law of Foreign Capital Investment forwarded by the Council of Ministers and the report of the Economic Committee on it. The 12th
Regular session on Thursday will focus on the draft law of Public-Private Partnership, forwarded by the Council of Ministers and the report of the Economic Committee on it. In addition, it will discuss the Draft Law on Privatisation, forwarded by the Council of Ministers and the report of the Economic Committee on it. In addition, it would discuss the letters received from the council committees and the Secretariat report on the work of the Council.
Hon.Sheikh Mohammed bin Abdullah Al-Harthy, Head of the Economic Committee of the Council, presented the committee's statement on the draft law on Bankruptcy and Insolvency.
The draft law, he explained contained 242 articles, divided into four chapters: restructuring, reconciliation, bankruptcy, conditions and procedures for the sale and distribution of assets, final provisions, rehabilitation and penalties. In addition, it includes the introductory section dealing with definitions and general provisions.
He noted that the Economic Committee had referred the committee report to the Legal Committee of the Council, which had reviewed it and expressed its views. In addition, the Economic Committee had held a joint meeting with the Legal Committee to re-discuss the views in detail and jointly agree on the final drafting of all articles.
Hon.Sheikh Mohammed bin Abdullah Al-Harthy ahead of the discussions, appreciation to the honourable members of the Council for the substantive proposals and views that they would contribute to enable enhancing the articles of the draft law.
The Law aims to create a legislative and legal framework that strengthens the legislative environment to attract investment by harmonizing the rules governing bankruptcy in order to deliver solutions to challenges. It also aims at organizing a bankruptcy-proof reconciliation for ‘restructuring’ through which the concerned parties cooperate with the struggling business owner to aid in the resumption of economic activity, thereby contributing to the promotion of investment and entrepreneurship.
It also aims at the regulation of bankruptcy reconciliation according to the latest legislative trends, and the establishment of bankruptcy provisions in a framework of balance between the rights of the bankrupt, creditors and public interest and the development of governing procedures in this regard.
The honorable members discussed the articles and expressed views to enhance it, in keeping with current economic developments and supporting the legislative environment to encourage investment in the Sultanate of Oman.