We, Qaboos bin Said, the Sultan of Oman
after perusal of the Basic Statute of the State promulgated by Royal Decree 101/96,
Royal Decree 4/74 Promulgating the Commercial Companies Law and its amendments,
Royal Decree 27/80 Promulgating the Postal Service Law,
Royal Decree 47/2001 that established the Ministry of Transport and Communications,
and Royal Decree 77/2004 Promulgating the Privatisation Law,
and in pursuance of public interest,
have decreed as follows
Article I
A closed Omani joint stock company named “Oman Post Company SAOC” wholly owned by the government is hereby established as from the date of entry into force of this decree.
Article II
1. All assets; liabilities; holdings; in rem, personal, and moral rights; and the accounting records and books of the Directorate General of Post and the Directorate General of Post in the Governorate of Dhofar are hereby transferred to the company and it bears their obligations.
2. All buildings designated for postal services are hereby transferred to the company at a token value amounting to one Rial Omani, except for the places designated for the Directorate General of Post in the headquarters building of the Ministry of Transport and Communications.
As for the lands on which these buildings are located or vacant lands designated for postal services, the company must benefit from them at a token financial charge through a usufruct for a period of 50 years renewable in accordance with the terms of the usufruct contract made between the company and the government.
Article III
The functions and objectives of the company must be determined in accordance with the constitutive contract and the articles of association of the company.
Article IV
The headquarters of the company must be in the Governorate of Muscat. It may establish branches or offices inside or outside the Sultanate.
Article V
The authorised capital of the company is hereby determined at an amount of 6,000,000 (six million) Rial Omani and the issued one at an amount of 3,500,000 (three million and five hundred thousand) Rial Omani, and it is permitted to amend the capital of the company in accordance with the Commercial Companies Law.
The capital of the company is divided into equal shares. The nominal value of each of them is one Rial Omani.
Article VI
The board of directors must be formed by a decision by the Council of Ministers based on the nomination of the Minister Supervising the Ministry of Finance in coordination with the Ministry of Transport and Communications.
Article VII
The financial resources of the company consist of the following:
1. The issued capital of 3,500,000 (three million and five hundred thousand) Rial Omani, and it is permitted to amend it in accordance with the Commercial Companies Law.
2. Revenues from the operational and investment business of the company.
3. Annual subsidy provided by the government to cover a deficit that may arise in the operational budget of the company.
4. Grants and gifts approved by the board of directors of the company and the relevant entities.
Article VIII
The company is exempted from corporate income tax for a period of five years starting from the date of practising the activity of the company. This may be renewed if necessary for no more than five years, provided that the renewal is issued by a decision by the Financial Affairs and Energy Resources Council.
Article IX
The company shall continue to apply the government systems and rules currently in force until the issuance of the systems and rules of the company, in a manner that does not contradict with the provisions of this decree.
Article X
The officials of the Directorate General of Post and the Directorate General of Post in the Governorate of Dhofar, who are identified in accordance with the needs of the company, must be transferred to the company. The regulations governing their affairs continue to operate until the issuance of an employee regulation by the board of directors of the company in accordance with the provisions of the Labour Law, and the provisions of Royal Decree 77/2004 Promulgating the Privatisation Law also apply in their regard and in regard to those officials who have not been transferred.
As for the new employees who will be appointed after the issuance of this decree, the provisions of the Omani Labour Law and the provisions of the regulation referred to in the preceding paragraph apply in their regard.
Article XI
The company shall prepare its constitutive contract and its articles of association in accordance with the provisions of the aforementioned Commercial Companies Law, in a manner that does not contradict with the provisions of this decree.
Article XII
The provisions of the aforementioned Commercial Companies Law apply to the company in regard to matters not governed by a special text in this decree.
Article XIII
This decree must be published in the Official Gazette, and comes into force on the date of its publication.
Issued on: 26 Rabi Al-Thani 1426
Corresponding to: 4 June 2005
Qaboos bin Said
Sultan of Oman
Published in Official Gazette 793 issued on 15 June 2005.