Who does not want to create a fortune? After all, it’s just one life, and we have to make the most of it. If your country feels like a market where much cannot be made in little time span, worry not! Gulf countries are known to turn rags to riches. Bahrain is a land which has come up in recent years as the one true hero of affluence. The place is just not known for its aesthetics but the quality of life it has in offer for you. There are a lot of business opportunities at this place, company formations here could be the best turning plot of your life. Bahrain has a liberal business environment – and a very organised law system which acts as a catalyst to proceed smoothly.
Today, this blog will talk about Annual General meetings and how this system makes it easy for businesses to run in Bahrain. Let’s see it with the lens of CR services.
What are Assembly General Meetings?
It is mandatory by Commercial Company Law Decree No. 21 of 2001 (as amended) for Joint-Stock Company, also called Bahraini Shareholding Company (BSC), and for Joint-Stock Company (Closed), also called Bahraini Shareholding Company (Closed) (BSC ©) to hold their Assembly General Meetings.
There are types of Assembly General Meetings, and these include:
– Ordinary General Meeting (OGM) or Annual General Meeting (AGM)
– Extraordinary General Meeting (EGM)
What is the Annual General Meeting?
Annual General Meeting is also known as the ordinary general assembly of the shareholders shall convene at the invitation of the chairman of the board of directors at the time and place designated in the company’s articles of association. The meeting is compulsorily held at least once a year during the six months following the end of the company’s financial year.
- For Bahraini Shareholding Company: The invitation is published for the shareholders in at least two daily Arabic newspapers; one of them at least must be necessarily being local. The publication shall be made at least 21 days before the gathering and will incorporate the gathering’s plan.
- For Bahraini Shareholding Company (Closed): The general assembly meeting invitation is sent at least 21 days before the meeting by registered mail. However, the invitation may be sent by taking the shareholders’ signature expressing that they know about the time, venue, and meeting
- Copies of the greeting archives will be mailed off the Ministry of Industry, Commerce and Tourism at least 10 days prior to the meeting.
The following bodies may invite the ordinary general assembly to convene:
- Chairman.
- Board of Directors along with a valid logic by the auditor.
- Upon a solicitation by various investors, the board of directors denotes at least 10% of the firm’s capital.
- Auditor in case of finding remarks whether they are financial or administrative or in case he cannot finish his or her goal.
- Ministry of Industry, Commerce and Tourism if a time of one month has slipped by from the date delegated for its gathering without it assembling, or if the quantity of the load up individuals turns out to be not precisely the base number needed for the gathering to be substantial, or if various investors speaking to in any event 10% of the firm’s capital so demands for genuine reasons.
How does this help company formation in Bahrain?
You can be sure that your business would run while staying on the right track while adhering to all law guidelines. Moreover, such systems help you believe that your company setup is not getting cheated at a new land or there would be no damage done to you through conspiracy or deceit.
Your company’s functions and proceedings will stay organised through such Annual meetings.
If there would be any trouble that would still bother you or do not know how to document your annual general meeting, company formation services like BostonBrooks are always here to give any Bahrain companies law help.
If you are unsure about company registration requirements, BostonBrooks is a leading boutique consulting firm focusing on offering consulting services in the field of Merger & Acquisition, Business Advisory, Company Formation and Corporate Compliance.
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