President Dr Mohamed Muizzu has today ratified the first amendment to the Companies Act (Act No. 07/2023), introducing significant changes aimed at expediting corporate procedures and enhancing regulatory compliance in the Maldives.
The amendment was passed by Parliament during its third extraordinary sitting held on Tuesday, 17 September 2024. The revised legislation reduces several deadlines stipulated in the original Act to streamline administrative processes for companies.
Key changes under the amended Act include:
• Section 100(a)(1): The deadline for sending out invitations for meetings has been reduced from 21 days to 3 days.
• Section 100(a)(2): The timeframe for holding meetings has been shortened from three months to ten days.
• Section 100(b)(1): Private companies are now required to send invitations for Extraordinary General Meetings (EGMs) with a prior notice of 7 days, reduced from the previous 14 days.
• Section 100(b)(2): Public companies must also adhere to a 7-day prior notice period for EGMs, down from 14 days.
• Section 126(a): The deadline for appointing directors when instructed by the Registrar has been decreased from 30 days to ten days.
• Section 126(b): Companies now have ten days instead of 30 to appoint a managing director upon the Registrar’s instruction.
These amendments are designed to enhance the efficiency of corporate governance and ensure timely compliance with regulatory directives.
Following the ratification, the amendments have been published in the Government Gazette and have taken immediate effect.
