Parliament Finalizes Amendment to Companies Act to Accelerate Board Appointments

The Parliament has concluded its work on an amendment to the Companies Act aimed at expediting the appointment process for Managing Directors and Directors to company boards. The proposed changes, introduced by Feydhoo MP Ismail Nizar on behalf of the government, seek to shorten the deadlines for these appointments and reduce notice periods for general meetings.

The amendment was debated in an extraordinary parliamentary sitting today, which was notably brief, concluding in about an hour due to limited participation. Following the debate, the bill was passed and forwarded to the Economic Committee for review. The committee meeting, which took place shortly after the parliamentary sitting, was brief as well, lasting only 10 minutes before approving the bill without further amendments.

The proposed changes include a reduction in the timeframe for appointing Managing Directors and Directors from 30 days to 10 days following a vacancy. Additionally, the amendment aims to shorten the notice periods required for general meetings. Currently, companies must provide 21 days' notice for general meetings; the amendment proposes reducing this period to three days. For extraordinary general meetings, the notice period is to be shortened from 14 days to seven days.

The amendment is now set for a parliamentary vote scheduled for tomorrow's extraordinary sitting. The session will also include a vote on the appointment of Abbas Shareef to the position of Prosecutor General.

These changes are anticipated to streamline corporate governance and enhance operational efficiency within companies, reflecting a broader effort to modernize business regulations in the Maldives.