Companies go for liquidation and declare bankrupt in all countries around the world. It is a normal thing which takes place everywhere. It is due to the changes in the global economy. But it is unfortunate that some cases are being misinterpreted in the Sultanate of Oman, due to lack of understanding of economic cycle and developments. Without any insight into the causes and factors of such things, some people are improperly talking about it.
There is no justification for such conclusions. Those who are coming up with such assumptions do not have any argument to support their stand. By such talks what they are contributing is just frustration in the local circles adversely affecting the investment environment in the country.
Perhaps raising the issue of liquidation of some of the companies and linking them to economic developments taking place in the country is nothing more than baseless rumour. There is no evidence or justification of what they have come up with.
Such irresponsible conclusions are being made despite clarifications coming from the Ministry of Commerce, Industry and Investment Promotion on such issues. After contacting the business group, the ministry has made it clear that the companies which are being liquidated were set up in 2019 and have never started their economic or commercial activities, and this the reason why they are being liquidated as per the rules and regulations. The announcement in this regard was also made in the official gazette.
One thing which has surprised all of us is that some are spreading fictitious stories about the economy of the country. Such things are being spread on social media also. This is nothing but spreading falsehood, slander and lies.
This is not the first time a company or companies are liquidated in Oman or anywhere in the world. This is not because of the conditions of the place. There are several reasons for such decisions as mentioned in Article 40 of the Companies Act. Among the reasons which are mentioned include internal differences, mergers, lack of any activity since its establishment or no activity for more than two years, or completion of the achievement of the purpose for which a company has been set up, or decision of the partners to end their partnership after completion of the agreement. There can also be management or financial issues behind the decision.
The liquidation is not always due to economic developments. It is important that before spreading any such statements, facts should be verified.
In the recent past, the government has announced incentives for merger and unification of registrations. This was to avoid duplicity of registration of companies. This required announcement of liquidation of companies and registrations and completion of the procedures. We notice that there are many companies which are involved in just one activity. It is natural that some of them need to withdraw from the market and go for liquidation.
At the same time, there are new companies being set up. They are being registered and working in dynamic economic environment in the country. Therefore, it is a must that if we speak anything, we must have full understanding of the issue, and do not exaggerate it.
The Ministry of Commerce, Industry and Investment Promotion has explained the matter so that there is no misunderstanding. It did so on behalf of the business group so that there is no misrepresentation of the business and economic conditions of the country. Therefore, it is also a kind of notice that those who spread such rumours may face legal consequences.
There is adequate freedom of expression in Oman. But there is a difference between spreading rumours and misunderstandings causing adverse effects to economic activities and airing views on a subject.
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