Oman is expected to endorse a new Commercial Companies Law before the end of 2004, Zawya.com reported. The draft law will go through various stages of legal formalities to be eventually promulgated with a royal decree.
The new code is to replace the existing company law, which was endorsed in 1974.
Through passing this new law, Oman looks forward to facing the challenges of globalization and to enable the domestic economy to deal effectively with the opportunities created by the World Trade Organization (WTO).
The draft law clearly defines mergers and acquisitions, transformation, dissolution and liquidation and establishment of business entities and foreign investment norms, etc.
In line with the prevailing law, a joint stock company offering shares to public must include SAOG (Societe Anonyme Oman General) to its name indicating that it is a public joint stock company. A joint stock company that is not offering shares to public must include SAOC (Societe Anonyme Oman Closed) to its name indicating that it is a closely held company. All joint stock companies must be registered with the Muscat Securities Market.
The new law is to regroup SAOC (closely held), SAOG (public) and LLC (Limited Liability Company) to Private Limited and Public Limited.
Other procedures like the price of shares, shares at a discount, the minimum capital to form a joint stock company and others are stipulated within the new law to organize the work of the private companies