The Maldives’ Parliament has passed an amendment to the Companies Act that shortens the deadlines for holding meetings and appointing company directors. The bill was approved with 85 votes during the third special session of Parliament yesterday.
The Government introduced these key amendments with the aim of expediting the appointment of managing directors and board members while reducing the timeframes for convening general meetings. North Feydhoo MP Ismail Nizar, representing the Government, spearheaded the proposal and presented it to parliament earlier this month.
Under the existing Companies Act, the Registrar of Companies has a 30-day window to mandate the appointment of managing directors and directors when vacancies arise. The new amendment reduces this period to just 10 days.
Additionally, the amendment revises the notice periods required for general meetings. Currently, companies must provide 21 days’ notice upon receiving a request for a general meeting. The proposed changes will cut this notice period to three days.
For extraordinary general meetings, the notice period is currently 14 days. The amendment will reduce this to seven days.
These changes are part of broader efforts to modernise the Companies Act, which was recently ratified to replace outdated legislation. According to the government, the amendment is designed to enhance corporate governance and allow companies to adapt more quickly to changing business conditions.
The new regulations will come into effect once the President approves the bill.
