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The bank may open bank accounts for liquidation, for depositing the proceeds of the sale of the bankruptcy assets covering the debtor’s debt in case of a financial restructuring under the Bankruptcy Law, or for liquidation under the Companies Law. The following conditions and documents shall be met and provided:
I. Commencement of any liquidation procedures under the provisions of Bankruptcy Law
1. The bank shall receive the court order that includes the following:
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Commencing any liquidation or administrative liquidation procedures against a natural or juristic person.
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Appointing one or more bankruptcy officeholder and specifying their names and powers, or forming a bankruptcy committee to manage the administrative liquidation procedures.
2. The bank shall receive a request to open the account from the liquidation officeholder or the representative of the bankruptcy committee, as the case may be, stating the purpose of the account.
3.
The name of the account shall be (name of the natural or juristic person under liquidation... – Liquidation Account).
4. The bank shall receive copies of the commercial register and memorandum of association and its annexes for the juristic person under liquidation, and a copy of the national ID or Iqama for the natural person under liquidation.
5. The bank shall receive copies of the national ID and commercial register or license of the liquidation officeholder. In case of administrative liquidation, a letter shall be obtained from the bankruptcy committee that includes the data of the person authorized to manage the account and a copy of his/her national ID.
6. The account shall be operated by the liquidation officeholder or the representative of the bankruptcy committee, as the case may be, in accordance with the court order to commence any liquidation procedure.
7. Checkbooks may be issued for such accounts at the request of the liquidation officeholder or the representative of the bankruptcy committee, as the case may be. ATM cards and/or credit cards shall not be issued for such accounts unless the court order to commence the procedure otherwise provides.
8. The bank, the liquidation officeholder or the representative of the bankruptcy committee, as the case may be, must confirm that the IDs and documents are true copies of the originals.
9.
Account validity:
a. Liquidation procedure: The account shall be valid until a court order to complete the procedure is issued. The account shall be closed by a letter
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from the liquidation officeholder based on the court order to complete the liquidation procedure.
b. Administrative liquidation procedure: The account shall continue to be valid according to the period stipulated in the Bankruptcy Law. Renewal shall be effected after the end of this period by a letter from the bankruptcy committee based on a court order, stating that the procedure is not completed and the period needed for completion. The account shall be closed upon the completion of the administrative liquidation procedure by a letter from the bankruptcy committee, stating that the committee has issued a decision to complete the procedure.
II. Liquidation for the termination reasons stated in Article 16 of Companies Law 1. The court order to liquidate a company shall be obtained. In case of a
voluntary liquidation by partners, the decision issued by the partners or general assembly of the company to approve liquidation shall be obtained.
2. A request from the liquidator to open a bank account shall be obtained.
3. The liquidator (name and restrictions on powers) shall be appointed by a court order or decision of the company’s partners or general assembly.
4. The bank shall receive copies of the commercial register and memorandum of association and its annexes of the company under liquidation.
5. The bank shall receive copies of the IDs of the owners of the company under liquidation, whose names are mentioned in the memorandum of association and its annexes. Listed joint-stock companies are excluded from this requirement.
6. The bank shall receive copies of liquidator’s national ID and the commercial register or license.
7. The name of the account shall be (name of company under liquidation... – Liquidation Account).
8. The account shall be operated by the liquidator or as stated in the company liquidation decision.
9. Checkbooks may be issued for such accounts at the request of the liquidator.
ATM cards and/or credit cards shall not be issued unless the company liquidation decision states otherwise.
10. The bank and the liquidator shall confirm that the IDs and documents are true copies of the originals.
11. The validity period of the account shall be as set forth in the court liquidation order. In case of voluntary liquidation, such period shall not exceed a maximum period of five years. Renewal shall be effected by a letter from the liquidator based on a court order, stating that liquidation procedure has not been completed and the period needed for completion.
12. The account shall be closed upon completion of liquidation procedure by a letter from the liquidator, to which a statement confirming the approval of the entity appointing the liquidator on the liquidation completion report is attached.
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III. Accounts for proceeds from the sale of the bankruptcy assets covering the debtor's debt in case of financial restructuring
1. The bank shall receive the court order that includes the following:
- The commencement of the financial restructuring procedure “the procedure” for the natural or juristic person “the debtor”.
- The appointment of a financial restructuring officeholder “the officeholder".