The system's project consists of 320 items to reinforce the reliability of commercial and financial transactions
The ministry of commerce and investment called the interested personals and the public to express their opinions and present their suggestions on the draft of the bankruptcy system, through the website, before the end of the day 01/25/1438 H. corresponding to 10/27/2016 AD, indicating that the aim of this project is to increase the economy efficiency by restudying the stumbling projects and enable them to overcome their financial difficulties or liquidate them in a way that will preserve all parties rights to reinforce the reliability of the business transactions.
It is worth mentioning that MCI prepared the bankruptcy system project in cooperation with the best international expert office that is specialized in this matter by following a method that can detect the requirements of the investors and businessmen in the Kingdom and analyze the financial difficulties that they faced.
Along with studying England's, Wales's, France's, America's, Germany's, the Czech Republic's, Singapore's, and Japan's best international practices in the field of bankruptcy. The election of these countries was based on several criteria including the possibility of dealing with bankruptcy cases in various ways suitable the case of the debtor, through the liquidation of his assets or set procedures that will enable his to continue his practice in addition to the diversity of the legal schools of these countries and the diversity of the policies and bankruptcy systems. The ministry supervised the studies and the recommendations of specialized international organizations like the World Bank and (UNCITRAL) and others to analyzed the results of these studies and adapted them in light of the commercial and investment activities requirements in the Kingdom.
The project system draft consists of 320 particular items in preventive settlement procedures, financial reorganization, and liquidation, with prioritizing the first two, to enable the stumbled debtors and allow them to practice their business again in the shortest time possible. Also, it aims to raise the percentage of paying back their debts to support the economically viable projects that have difficulties and financial problems along with preserving the debtor's right. This project distinguishes between the feasible from the unfeasible projects and adopts the right procedures to liquidate them in a short period of time with guaranties to preserve their economic value.
The project came in statement that has detailed provisions about the procedures, in a statement the competent court and the Trustees of the financial reorganization and liquidation, it has flexible chance for the parties to agree on the contents of the proponents of preventive settlement and financial restructuring, like the agreement on the rescheduling the debts and reduce the amounts.
The project also took into account the development of small and medium enterprises and specified certain provisions for them in the cases facing financial difficulties to encourage business and economic practices. It also authorized the financial sectors to issue legislations that will enable them to organize the bankruptcy procedures suitable to the sensitivity of these sectors and the associated risks.
The Ministry of Trade and Investment calls the public who are interested in participating in this project, to express their opinions by visiting this link: click here
or send their suggestions and comments to the following e-mail: email@example.com