The Economic Committee of Parliament has unanimously passed the Companies Act Amendment Bill without any modifications.
The bill, which was subject to preliminary debate earlier today, received strong support with 77 members voting in favor during an extraordinary session.
Following the debate, Speaker Abdul Raheem referred the bill to the Economic Committee for detailed consideration. The committee reviewed the proposed changes and approved the bill as it was presented.
The government’s proposed amendments focus on improving the efficiency of corporate governance. Notably, the changes stipulate that if shareholders request a special general meeting, the company must call the meeting within three days of receiving the notice and hold it within ten days. This is a significant reduction from the current requirement, which allows up to three months for such meetings to occur.
Additionally, the amendments grant the Registrar the authority to direct a company to appoint directors and managing directors if there are vacancies or if the issue is brought to the Registrar's attention. The company must then appoint the necessary directors and managing directors within ten days and report the appointments to the Registrar.
These changes aim to streamline corporate operations and ensure more timely management of company affairs, reflecting the government's commitment to enhancing corporate governance practices.
The bill, which was subject to preliminary debate earlier today, received strong support with 77 members voting in favor during an extraordinary session.
Following the debate, Speaker Abdul Raheem referred the bill to the Economic Committee for detailed consideration. The committee reviewed the proposed changes and approved the bill as it was presented.
The government’s proposed amendments focus on improving the efficiency of corporate governance. Notably, the changes stipulate that if shareholders request a special general meeting, the company must call the meeting within three days of receiving the notice and hold it within ten days. This is a significant reduction from the current requirement, which allows up to three months for such meetings to occur.
Additionally, the amendments grant the Registrar the authority to direct a company to appoint directors and managing directors if there are vacancies or if the issue is brought to the Registrar's attention. The company must then appoint the necessary directors and managing directors within ten days and report the appointments to the Registrar.
These changes aim to streamline corporate operations and ensure more timely management of company affairs, reflecting the government's commitment to enhancing corporate governance practices.
