BCC 242/2006
Type
Case
Court
Bahrain Court of Cassation
Jurisdiction
Bahrain
Taxonomy
General Company Law & Business Entities, Directors
Copyright
LexisNexis
Decision date
5 Feb 2007
Catchwords
Company – Shareholders – Board of Directors – License – Dissolution - Shares
This case involved money which had been invested in a company which it was later discovered had no license. A key issue was whether the defendants were liable to pay the money as they claimed they were just shareholders. They had established the company and were on the board of directors so were liable.
Background
Two claimants filed a case against two defendants and other defendants before the civil court requesting the defendants pay the first claimant $25000 and the second claimant $70000. The claimants said that the defendants had established a limited company for trading shares and that the defendants received the amounts in order to invest. The claimants said that they discovered later that the company had no licence.
The court ruled that the defendants should pay the claimants the amounts.
The defendants appealed the ruling before the court of appeal. The court amended the appealed ruling and ruled he defendants should pay the first claimant $13942 and the second claimant $59400.
Decision