Monday, November 23, 2015

Law of Muscat Municipality

In line with new plans for a complete restructuring of the strategies and objectives of Muscat Municipality (the “Municipality”), 3812015 came into effect on the 13 October 2015, thereby replacing the RD 8/1992.

The new law aims to achieve greater efficiencies. It specifies that the Municipality shall achieve its objectives by utilizing the funds allocated to it by the State, the profits incurred from its investments and the general revenue that the Municipality collects from fees and charges.


Monday, November 16, 2015

Enforcement of Omani Court Judgments and Arbitration Awards in Commercial Disputes Process and Procedure

The Enforcement Department is a separate authority within the Omani Primary Courts which overlooks all aspects of enforcement.

Each Primary Court in the country is furnished with at least one enforcement judge who is also a member of the Primary Court judge panels.

Enforcement judges have jurisdiction to review all disputes, applications and requests in relation to enforcement of judgments / awards as well as any preliminary and emergency applications in ongoing commercial cases involving matters under their jurisdiction.


Monday, November 9, 2015

Director's Duties in Oman

The functions and powers of a director of a joint stock company and a manager of a limited liability company (“LLC”) are provided for in a company’s articles of association (“articles”) or constitutive contract and the Commercial Companies Law as promulgated by Oman Royal Decree (“RD”) 7/1974 (as amended) (the “CCL”). In addition, the board of directors (the “Board”) of a public joint stock company (SAOG) will be subject to the Code of Corporate Governance (the “Code”), which shall become effective on 22 July 2016. However, the Code shall come into effect for each SAOG upon the expiration of the validation period of the Board, even if the validation period is before 22 July 2016.

The Code provides a framework for the management and control of SAOGs listed on the Muscat Securities Market, and outlines the composition of the Board (Principle 2) in Omani companies, as well as the functions and powers attributed to them (Principle 3).


Thursday, November 5, 2015

Without Prejudice in Oman

In common law jurisdictions, the term ‘without prejudice’ is a reservation made on a statement suggesting that it cannot be used against the publishing party in future dealings or litigation or arbitration. – DUHAIME’S LAW DICTIONARY.

The policy behind the common law rule is to encourage settlements and to promote free and frank discussion toward that end. If parties in a dispute are encouraged to resolve their differences without taking up the time of a court or an arbitral tribunal, they must be able to communicate freely without the fear that what they say or write will be used against them in evidence as admissions. If the communication is a genuine attempt to settle a dispute, it will be protected from being produced in evidence.


Sunday, October 25, 2015

Legal Update - New Regulation on the Public Establishment for Industrial Estates

Royal Decree 32 of 2015 (the “RD”) promulgates the new Public Establishment for Industrial Estates Regulation (the “New Regulation”) which repeals Royal Decree 4 of 1993 which promulgated the regulation that used to govern the Public Establishment for Industrial Estates (“PEIE”).  The RD was issued on July 21, 2015 and came into effect on July 27, 2015.

It is evident from the wording of the New Regulation that emphasis is given to social development and it is intended to go hand-in-hand with the planned economic development to achieve a comprehensive and sustainable economic and social development.


Thursday, October 15, 2015

IPOs from a Family Business Perspective - Pre-IPO Legal Due Diligence

The GCC region has a high number of family run businesses. Recently Oman has witnessed a growing interest amongst such businesses to opt for an IPO. To initiate an IPO, an internal decision must be made by the shareholders. Once the decision has been made to pursue the IPO, the legal advisor has an important role to carry out comprehensive legal due diligence with the cooperation of management and shareholders. Due diligence is critical to examine the business’s legal risks such as its corporate and tax position, major contractors with suppliers and customers, and debts and liabilities. 


Monday, October 5, 2015

Mining and Mineral Activities in Oman

Together the Mining Law and Executive Regulations govern mining activities in Oman. There are various types of mining licence which include: (1) exploration; (2) drilling; (3) mining of which there are six categories; (4) sustenance; and (5) mining concession. Any license holder has the right to carry out exploration, drilling, development or mining operation in accordance with the license issued, as outlined in the Client Bulletin. The Ministry of Commerce and Industry is responsible for granting licenses and also suspension and cancellation of any right to mining.


Thursday, October 1, 2015

Purchasing a Business in Oman: Asset Purchase or Share Purchase?

To acquire a business in Oman through an Asset Purchase the purchaser will need to have a legal presence and commercial registration in Oman, whereas a Share Purchaser does not. A Share Purchaser may also be administratively quicker and cheaper than an Asset Purchase. In addition, there are other concerns that may affect an Asset Purchaser such as assigning lease contracts and the transfer of employees and maintaining Omanisation requirements.


Sunday, September 27, 2015

Legal Updates

RD  30/2015: Establishing  Oman  Governance  and  Sustainability  Centre  and  Promulgating its Regulation


Sunday, September 20, 2015

Penalties for Delay Under Omani Construction Contracts

Considering that construction projects are characteristically very complex, project delays are, at times, to be expected. However, contractors must be wary that a penalty may be levied if the contractor fails to complete its full scope of works by the agreed-upon project milestones / completion date if the contractor is responsible for the delay.