The Parliament has passed the amendment proposed to the Company Act to shorten the period given to hold the extraordinary general meetings of the company. The amendment introduced by Parliamentarian Ismail Nizar seeking to expedite procedures related to special general meetings for companies, was passed by the vote of 85 parliamentarians.
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.
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 was reviewed by the parliament and referred to the Parliamentary Committee on Economic Affairs, which unanimously approved it without further amendments, before sending it back for the parliamentary approval.