Economic restructuring in the reorganization of public shareholding companies "a comparative study"

Abstract

Most financial companies resort to not violating the principle that the company’s capital must remain as specified in the memorandum of association, while a number of companies tend to restructure the company through mergers to obtain sufficient capital in order to make the necessary correction to the technical, economic and financial structures of the company where the joint-stock companies are affected Like the rest of the business sector, the conditions of the sector to which it belongs, the surrounding economic conditions, for example, Vision 2030, and the relevant regulatory legislation, which enhances the importance of periodic follow-up of the performance of companies listed in the financial market and monitoring of their financial positions.

This is in order to extinguish losses and improve the company’s financial structure. One of the most important legislative and regulatory measures related to the Bahraini legislator reorganizing Law No. (22) of 2018 Related to regulation and bankruptcy, as well as the new corporate system, which some amendments have been made to by allowing foreign investors to participate in public shareholding companies. These legislations also urged companies and their general assemblies to amortize the losses either by merging the company According to the relevant regulations - to the extent that the percentage of losses decreases to less than half of the paid-in capital, or the company is dissolved before the term specified in its articles of association.

The importance of this study, which lists all restructuring operations in the Bahraini financial market, whether before or after, is the classification of the company among the loss-making companies, in order to examine the financial impact, taking into consideration the motives behind these operations and the mechanisms for their implementation.  This study also aims to assess the impact of capital restructuring operations on the financial performance of companies integrated into the Bahraini financial market and to identify the most prominent global practices used to organize corporate capital restructuring operations.