Companies failing to pay annual fee to be dissolved via Registrar of Companies

The government has presented a bill to the parliament proposing revision to the Companies Act, stipulating the power for Registrar of Companies to dissolve companies failing to pay the annual fee.

The bill was presented by Kulhudhuhfushi parliamentary member, Abdul Ghafoor Moosa on behalf of the current administration, stating 7,000 cases of registered companies with inconsistencies in the past 22 years. These inconsistencies include, failing to pay the annual fee and the annual statistical reports as well as failing to present the annual reports of directors and auditors.

According to Ghafoor, there is no valid procedure to dissolve these companies with inconsistencies in the current Companies Act. He also added the need to assist newly registered companies, as one of the main purposes of presenting the bill.

As stated in the current Companies Act, all matters of companies failing to pay the annual fees are to be presented to court via the Registrar of Companies. However, according to the bill presented by Ghafoor, these companies should be dissolved by the Registrar of Companies itself.

The bill presented by Ghafoor recognizes the mandatory payment of the annual fee by all companies as well as the power for Registrar of Companies to suspend all operations by a company if the annual fee is not paid by March of every year. Moreover, the bill also gives the Registrar of Companies the power to dissolve companies failing to pay the annual fee by May.

Furthermore, the bill also gives the right to the Registrar of Companies to dissolve companies that fail to submit the annual statistical reports as well as the annual reports of directors and auditors.

In addition to the bill regarding the Companies act, Hithadhoo Central parliamentary member Ibrahim Mohamed Didi presented a bill pertaining to the development of the mother tongue in the Maldives. The bill, presented on behalf of the administration, stipulated the role of the Language Academy reporting directly to the Ministry of Arts, Culture and Heritage. The current Act stipulates the Academy to liaison with the Ministry of Education.

Both bills presented to the parliament, on Monday, has been received and sent to the respective committees for further examination.