Resolution No. (6) of 2021 establishes the regulatory framework and procedures for converting sports clubs in the Kingdom of Bahrain into commercial companies. This decision aims to professionalize the sports sector, encourage private investment, and enhance the financial and administrative governance of clubs
Key Aspects of the Decision:
- A committee chaired by a representative from the Ministry of Youth and Sports Affairs (with members from the Ministries of Finance and Commerce) oversees the entire conversion process and provides technical advice.
- The General Assembly must specify the intended legal form of the company and identify the proposed owner(s).
- The club's Board of Directors must submit a formal request supported by the General Assembly minutes, a comprehensive financial report (assets and liabilities), and a valuation report from an approved appraisal company.
- The newly formed company remains liable for all contracts and obligations incurred before the conversion.
- Existing General Assembly members retain their memberships as beneficiaries of the club's services, subject to the new management's regulations.
- The legal name of the club is transferred to the company upon completion of the conversion, and no other club may use it thereafter.
- For profit-seeking companies, proceeds from share sales or subscriptions are deposited into a dedicated Ministry account to support national sports activities.