Under the 2009 decision, it was required to pay half the maximum fine prescribed for a violation in order for it to be settled. The new decision reduces this amount by requiring the payment of a quarter of the maximum fine for the crime only. The old decision also had a restriction where it was not allowed to settle a violation that involved more than 10 workers or if the same violation is reported more than twice, however, the new decision removes this requirement and introduces a new requirement to pay a 1,000 Rial Omani fine in regard to violations involving multiple employees pursuant to article 143(1) of the Labour Law.

The new decision also provides a more comprehensive framework for submitting applications for settlement and provides additional details for the cases in which a non-Omani worker has to be deported.

You can read this ministerial decision in full in English on the link below:

Step 1—Liquidation Trigger

The liquidation of a company can be triggered by any of the cases stipulated in article 40 of the Commercial Companies Law. This must be formalised by a resolution by the shareholders of the company commencing the liquidation or a court judgment made pursuant to a request by a related party, the Ministry of Commerce, Industry, and Investment Promotion, or the Financial Services Authority.

Step 2—Legal Dissolution

Upon the issuance of the liquidation shareholder resolution or court judgment, the company is legally deemed dissolved and enters the “phase of liquidation”.

Step 3—Appointment of the Liquidator

The same shareholder resolution or judgment formalising the liquidation must also include the appointment of a liquidator to carry out the tasks required for the liquidation process.

Step 4—Carrying out the Liquidation

The liquidator is required to carry out the liquidation on the basis of the instructions provided to him in the shareholder resolution or judgment. These instruction can determine the procedures and timelimits associated with the liquidation. In the shareholder resolution or judgment do not include specific instructions, the liquidator must abide by the provisions found in article 46 of the Commercial Companies Law, which require communicating with all creditors, publishing an announcement regarding the liquidation, and specifying a time limit of 180 days for credits to submit their claims.

Step 5—Settlement of Creditor Claims

Upon receiving the claims of the creditors, the liquidator is required to settle all valid claims against the company on the basis of the legal rank of each claim, after deducting the expenses of the liquidation and the fees of the liquidator.

Step 6—Distribution of Remaining Assets

If there are any remaining assets after the settlement of the claims, the liquidator is required to distribute these assets among the shareholders in accordance with the constitutive contract of the company.

Step 7—Submission of Final Report

Upon the completion of the liquidation process, the liquidator is required to a final report to the shareholders of the company as well as the creditors within 30 days of the completion of the liquidation process. Once the shareholders approve this report, the liquidator is required to submit a copy of the report to the Ministry of Commerce, Industry, and Investment Promotion and also publish an announcement of the completion of the liquidation process.

Step 8—Removal of Registration

Upon receipt of the approval report, the Ministry of Commerce, Industry, and Investment Promotion will delete the registration of the company from the Commercial Register.

Conclusion 

If you are interested in learning more about the process of liquidation, I highly advise you to familiarise yourself with the provisions under the Commercial Companies Law. You can also view the latest liquidation announcements on Decree Risk:

Written by:

Maraam Al-Mughairy

Maraam Al-Mughairy is a Junior Legal Researcher at Decree and a final year Law with Politics student at the University of Manchester.

The new telecom devices regulation extends the scope of TRA control by introducing brand new permit requirements for manufacturing telecommunication devices, a matter that was previously unregulated under the regulation of 2015.

The new regulation also provides a much more detailed framework for customs clearance that includes a new classification for commercial, non-commercial, and temporary use clearance orders.

Another new aspect of the new regulation is the introduction of new provisions that permit applying electronic approval marks for devices that support this technology.

The regulation also introduces new administrative fines including new fines for importing telecommunication devices without a permit (1,000 Rial Omani fine) and the failure to obtain a clearance order (100 Rial Omani fine per shipment).

The new regulation enters into force in less than 30 days. You can read it in English in full on the link below:

PUBLIC TENDER

A public tender is the default way in which government procurement is carried out. Under this process, the government announces its desire to buy a good or service and details the specifications it needs for the project. Interested companies, or tenderers, are invited to submit their bids to the government within a specific timeframe. Upon receiving the bids, the government reviews the technical and financial aspects of the bid and selects the most optimum one. A public tender has no legal restrictions on who can apply and how companies international or local can compete on the basis of whether or not the tender is designated as “international” or “local”.

LIMITED TENDER

A limited tender is very similar to a public tender, the main difference being that the companies that can compete in the tender are “limited” to those specifically invited by the government to compete. In certain sophisticated projects, the government might create a pre-qualification system where companies interested in competing are invited to register their details, and those that meet the requirements set by the government will be invited to submit a bid in the limited tender. This is usually done to ensure that the bids are of a certain quality and to reduce the burden on the government to review low-quality bids.

MUMARASAH

Mumarasah can be translated as “by practise”, but it essentially means that the government will select the supplier of a good or service through a process of negotiation with a pre-identified number of candidates. The law provides in article 50 an exhaustive list of categories of supplies in which mumarasah can be used, such as in regard to the supply of items that cannot be identified with precision or consultancy works that require specific technical knowledge.

DIRECT AWARD

Direct award is the most simple form of procurement, which is the process of awarding a contract directly to a specific supplier. Government entities are allowed to directly award contracts for projects with a value not exceeding 10,000 Rial Omani, which can be increased up to 25,000 Rial Omani with the approval of the head of the government unit. Outside this limit, a government entity can award a contract to a private company only through a direct award by the Tender Board in special cases.

COMPETITION

Competition is a procurement method of contracting for the purpose of conducting studies, designs, or other artworks necessary for a specific project. Under this process, a government entity sets the objectives, scope, and specifications of the project and the prizes that are given to the winners of the competition. This form is usually used for creative and visual works, such as the design of logos and architectural buildings.

CONCLUSION

If you are in the business of supplying goods and services to the government, it is extremely important for you to familiarise yourself with the provisions of the Tender Law. You can read the full text of the law on the following link:

Written by:

Maraam Al-Mughairy

Maraam Al-Mughairy is a Junior Legal Researcher at Decree and a final year Law with Politics student at the University of Manchester.

This regulation provides the legal framework for families to submit an application to the MOSD to foster an elderly person who meets the requirements stipulated in the regulation such as being an Omani national who does not enjoy adequate family care, and is free from communicable diseases. Only families who have at least one Omani member can submit an application to foster an elderly person, and this family must prove that it has appropriate housing and is financially capable of supporting the elderly person, among other requirements stipulated in the regulation.

The Governance Regulation for the Care of the Elderly in Foster Families enters into force tomorrow. You can read it in full in English on the link below:

1. The Right to Equal Opportunities  

Article 15 entrenches justice, equality, and equal opportunities among citizens. This aspect of the constitution strengthens national unity as every citizen is guaranteed an equal right to contribute to society. Equality improves the societal structure by fostering family cohesion as women and men have equal opportunities.

2. The Right to Life and Dignity 

Article 18 guarantees the right to life and dignity as the state is committed to respecting and promoting the life and dignity of every citizen which is manifested in other provisions in the constitution as well as other laws in Oman.

3. The Right to Private Life

Article 36 was established as a fundamental right which recognised the right to private life. It is worth noting that this right was not recognised in the previous constitution, and there is evidence that this new provision has resulted in systemic change on the legal system. A year after the promulgation of the new constitution, the Personal Data Protection Law was issued which was the first comprehensive privacy law in Oman.   

4. The Right to Education

Article 16 emphasised the right to education for all citizens, aiming to build character, preserve national identity and foster scientific thinking. Education is a guaranteed right as the primary stage of schooling is compulsory, giving all citizens a sufficient educational foundation.

5. The Right to Personal Freedom  

Article 23 guarantees the right to personal freedom to all citizens. This prohibits arresting, searching, detaining, or imprisoning a human, or limiting his freedom of residence and movement except in accordance with the provisions of the law.

These are a few provisions in the Basic Statute of the State that show some of the rights that are guaranteed by the Omani constitution. I highly advise you to read the full text of this extremely important legal instrument in English and Arabic using the link below:

Written by:

Maraam Al-Mughairy

Maraam Al-Mughairy is a Junior Legal Researcher at Decree and a final year Law with Politics student at the University of Manchester.