Latest news with #BahrainBusinessmen'sAssociation
Daily Tribune
22-02-2025
- Business
- Daily Tribune
MPs to vote on shareholder rights in board appointments
Parliament will vote on Tuesday on a proposal to grant shareholders holding at least 10% of a company's capital the automatic right to appoint board members in proportion to their stake, regardless of company rules. The amendment to the Commercial Companies Law seeks to remove a clause in Article 175 of Decree-Law No. 21 of 2001, which currently allows firms to override this right through their founding agreements. Supporters argue that the change would give minority shareholders a stronger voice in company decisions. The Bahrain Chamber of Commerce and Industry has backed the proposal, saying it would create a fairer balance among shareholders and prevent larger stakeholders from monopolising board seats. However, it suggested further review on how the rule would apply to companies with existing shareholder agreements. The Bahrain Businessmen's Association has also endorsed the move, calling it beneficial for the business sector. The proposal has been submitted by MPs Ahmed Sabah Al Salloom, Khalid Buanaq, Maryam Al Dhaen, Basma Mubarak, and Ali Saqer Al Doseri. Under the amendment, shareholders with at least 10% of a company's capital would have the right to appoint board members in proportion to their stake, with fractional shares rounded to the nearest whole. Shareholders who do not exercise this right or lack enough shares to appoint a member could instead use their stake for voting. If the right is not exercised, it would be forfeited for that board election cycle. The amendment consists of three articles: the first revises Article 175 to reflect the change, the second repeals any conflicting laws, and the third stipulates that the amendment would take effect the day after its publication in the Official Gazette.
Daily Tribune
05-02-2025
- Business
- Daily Tribune
Calls for reform amid rising rent defaults
A growing concern about the defaults of tenant rents is one that is driving calls for far-reaching reform within Bahrain's real estate sector. Real estate experts are calling for a fully integrated online system that will allow landlords to do a background check on prospective tenants before signing any rental contract with them. This, they say, is the only way around the growing issue of rent arrears that is destabilising the market and affecting the national economy. The proposal mirrors similar systems already in place in other countries, such as Saudi Arabia's 'Ejar' platform, designed to streamline the landlord-tenant relationship. Platform Experts stress that such a platform would enhance transparency and deter fraudulent behaviour. 'The issue of tenants delaying or failing to pay rent is a major concern threatening the stability of the local real estate market and negatively impacting the national economy,' stated Nasser Al Ahli, a real estate expert and head of the Real Estate Committee at the Bahrain Businessmen's Association. Al Ahli highlighted the increasing number of court cases and complaints from landlords as evidence of the problem's severity, impacting residential, commercial, industrial, and administrative sectors, with the residential sector being the most affected due to high demand and diverse tenant profiles. Consequences 'The consequences of these defaults are far-reaching. Landlords are withdrawing from the market, leading to a decline in related activities such as construction, real estate brokerage, and building materials. The government also loses revenue from rental fees (currently 10%), and both local and regional investors are pulling out, deterring new investment,' Al Ahli warned, suggesting creating a specialised department within the courts or municipalities to verify tenant backgrounds, similar to bank credit checks facilitated by companies like Benefit.
