The Government has put forward crucial amendments to the Companies Act aimed at speeding up the process of appointing managing directors and directors to company boards, as well as significantly reducing the timeframes for convening extraordinary general meetings. Parliament is set to debate the amendments during tomorrow’s session, following its initial reading earlier this month. The proposal was introduced in Parliament by North Feydhoo MP Ismail Nizar on behalf of the Government.
Under the existing law, the Registrar of Companies has a 30-day window to mandate the appointment of managing directors and directors for both public and private companies when a vacancy occurs. The proposed amendment seeks to cut this period to just 10 days, enabling faster appointments and minimising disruption in corporate leadership.
The amendment also targets the notice period required for convening general meetings. At present, companies must provide 21 days’ notice after receiving a request for such a meeting. The revised legislation aims to reduce this notice period to just three days, ensuring that companies can respond more swiftly to requests from shareholders or board members.
For extraordinary general meetings, the current requirement is to give 14 days’ notice. The proposed changes would cut this notice period to seven days, allowing companies to address urgent matters more promptly.
These amendments come as part of broader efforts to modernise the Companies Act, which was ratified earlier this year to replace outdated legislation. The proposed changes are intended to further streamline corporate governance, making it easier for companies to adapt to dynamic business environments.
