Parliament has today completed work on the amendment proposed to the Companies Act which calls to shorten the deadline for appointing Managing Directors and Directors to company boards.
Parliament has today completed work on the amendment proposed to the Companies Act which calls to shorten the deadline for appointing Managing Directors and Directors to company boards.
The amendment was proposed to parliament by Feydhoo MP Ismail Nizar on behalf of the government.
An extraordinary sitting of the Parliament was held today to debate on the amendment. The sitting was brought to an end within about an hour due to a lack of MPs wanting to participate in the debate.
After voting on the bill, it was forwarded to the Economic Committee for review. The committee meeting was held within 30 minutes of the bill being passed. The committee meeting lasted no more than 10 minutes, with the bill being approved without any further changes.
The amendment has now been sent for a parliamentary vote. A third extraordinary sitting of the Parliament will be held tomorrow to vote on this amendment.
Tomorrow's sitting will also see a vote on appointing Abbas Shareef to the post of Prosecutor General.
As the law stands now, the Registrar of Companies holds the authority to appoint Managing Directors and Directors of company boards within 30 days of vacancy. The amendment reduces this window to a period of 10 days.
The amendment also calls to decrease the notice periods for general meetings of companies. The law now states that notice must be given within 21 days of a request, with the amendment proposing to reduce this to three days.
For extraordinary general meetings, the notice period is suggested to be shortened from 14 days to seven days.
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