BAHRAIN’S Shura Council will dedicate its session next week to debate the 195-article Bankruptcy Law.
Financial and economic affairs committee chairman Khalid Al Maskati said the law, which was approved unanimously by MPs last week, had flaws and that the committee would finalise its review by Wednesday ahead of next Sunday’s session.
Under the law, tough new penalties are on the way for people who fraudulently file for bankruptcy to avoid settling their financial commitments.
Those who deliberately hide money to commence bankruptcy proceedings, exaggerate debts, deliberately exclude debtors from bankruptcy documents presented to courts or provide false information will face up to two years in jail and a fine up to BD100,000.
Others who reach secret deals with those seeking bankruptcy status or provide false information about a debtor will face the same punishment.
Meanwhile, a board chairman or assigned executive whose negligence or dishonest behaviour results in bankruptcy will be fined up to BD100,000.