Parliament Approves New Companies Bill

The Parliament has passed a contemporary Companies Bill, marking a noteworthy update after 27 years since the inception of the existing Companies Act.

The bill received 53 votes in favor, as only one MP dissented. Following its parliamentary approval, the bill is now slated for submission to the President for ratification.

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The newly approved legislation meticulously delineates the processes, rules, and procedures governing the establishment, registration, operation, and dissolution of companies within the Maldives.

Comprising an extensive framework, the new Companies Act encompasses 248 articles, a substantial increase from the 104 articles present in the current law.

Upon the President’s ratification, the old Companies Act is set to be repealed, with companies granted a transitional period of one year to implement necessary changes to align with the provisions of the new law.

It is worth noting that attempts were made to bring the bill to a vote during the preceding parliamentary session. However, the vote could not be conducted due to the absence of the requisite quorum of 44 MPs.

Introduced during the previous administration on behalf of the Maldivian Democratic Party (MDP), the companies bill was submitted by Dhuvaafaru MP Ismail Ahmed.