Friday, March 29, 2024 | Ramadan 18, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Liquidation normal in an economy...

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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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