Oman New Bankruptcy Regulation under Consideration
Bankruptcy is one of the most serious and tough situations a business can experience, and this difficulty extends and affects more than those in charge. All those who hold a stake in the entity will feel some repercussions. It is therefore vital that the law helps to sort out the situation by providing more clear instruction concerning what the requirements from the business.
Oman is one of the crucial GCC nations and has a significant economy in the region. There are a considerable number of expats in the country and also a substantial amount of businesses across various industries. As such, the concept of bankruptcy and legislation relating to it are of utmost importance.
There has recently come under consideration, a new bankruptcy regulation which looks to improve the processes and steps that are taken following a bankruptcy, and the overview of the potential amendments are as follows.
The principal goal of the regulation is to protect employees who, at present, are at higher risk of not receiving their salaries in the case of bankruptcy. The law would make it so that the assets of the company would be collected and valued, and from there, the first area to consider would be pending payments as well as salaries.
Following this, the debtors and creditors of the company should be considered as this will allow for an accurate view of the position of the company to be formulated. However, the key takeaway is that the employees and those dependent on the company for salaries are paid. However, the law does not guarantee wages will be paid, but only that they are a primary priority.
The regulation is currently under consideration by the economic committee. This extremely employee-friendly regulation would provide significant confidence to many people looking for jobs in the nation.