Ali Al-Aradi, a member of Bahrain’s Shura Council, has called for a comprehensive overhaul of the Kingdom’s Reorganisation and Bankruptcy Law. In a recent statement, Al-Aradi emphasized that reorganization should be the primary focus of the law in order to ensure its relevance and effectiveness in the face of evolving economic conditions. While acknowledging the advantages of the current law, he also highlighted practical challenges that need to be addressed through targeted training and minor legislative refinements. Al-Aradi stressed the importance of prioritizing reorganization over bankruptcy when activating the law through law firms or consulting offices.
One of the key points raised by Al-Aradi is the need for specific adjustments to the law based on practical experience. He pointed out that when the law was initially enacted, it lacked precedent, making it necessary to refine and amend certain areas to improve its effectiveness. In order to prevent abuse and ensure transparency, Al-Aradi proposed the establishment of a registry to monitor business owners benefiting from bankruptcy protections. Additionally, he suggested prohibiting these individuals from assuming leadership roles in other companies to prevent any potential misuse of the law.
In his proposals for reforming the Reorganisation and Bankruptcy Law, Al-Aradi also recommended removing the criminal aspect from certain commercial practices, such as those involving checks issued by companies undergoing reorganization. He argued that fraudulent bankruptcy and related offenses are already covered by criminal law, making it unnecessary to duplicate these provisions in the bankruptcy law. Instead, complaints related to criminal activities should be filed with the appropriate authorities to ensure proper investigation and prosecution.
Overall, Al-Aradi’s suggestions for overhauling Bahrain’s Reorganisation and Bankruptcy Law are aimed at improving its effectiveness and ensuring that it remains relevant in the changing economic landscape. By prioritizing reorganization over bankruptcy and addressing practical challenges through targeted training and legislative refinements, Al-Aradi believes that the law can better serve the needs of businesses and individuals facing financial difficulties. His emphasis on transparency, accountability, and practical experience highlights the importance of continuous evaluation and adjustment to keep the law up to date and effective.
