Parliamentarians have emphasised the current significance of the government's proposed amendments to the Company Act. The bill, introduced by Parliamentarian Ismail Nizar, seeks to expedite procedures related to special general meetings for companies.
Under the proposed changes, companies would be required to issue invitations for special general meetings within three days of receiving a written notice, compared to the current 21-day requirement. Additionally, the meeting must be held within 10 days of the notice, replacing the existing three-month timeframe. Furthermore, companies would need to provide a 7-day notice for special general meetings, as opposed to the current 14-day notice period.
While presenting the bill to the parliament, Nizar highlighted that the amendment aims to facilitate a more dynamic business environment and improve corporate governance.
During the debate, Deputy Speaker Ahmed Nazim underscored the urgency of the amendment, noting that with the resignation of the CEO of Bank of Maldives (BML) and a special general meeting planned for September 21 to address the bank’s issues, speeding up meeting procedures is crucial for effective company management.
While many members supported the amendment, some opposition members questioned its immediate relevance.
The proposed changes also include provisions for increasing the number of members on the boards of directors for both public and private companies. The bill has been reviewed by the parliament and referred to the Parliamentary Committee on Economic Affairs, which has unanimously approved it without further amendments