PCB Issues New Regulation on Responsibilities of Company Secretaries in SOEs
The Privatisation and Corporatisation Board (PCB) has issued a new regulation outlining the responsibilities, appointment, and dismissal procedures of company secretaries in state-owned enterprises.
Approved last week, the regulation seeks to ensure that company secretaries are suitably qualified to perform their duties, while also standardising the role across state-owned companies in a transparent manner. The initiative is expected to strengthen the effectiveness of boards and enhance recognition of the role of company secretaries within these enterprises.
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The regulation specifies the educational and professional requirements for individuals appointed to the post. The criteria vary depending on the category of company. For banks and other financial institutions registered with the Maldives Monetary Authority (MMA), candidates must have at least five years of management experience along with seven years of experience in a related field. A Master’s degree is considered sufficient with seven years of relevant experience, while those with a Bachelor’s degree require a minimum of nine years.
For subsidiaries of state-owned companies, a candidate must hold at least a Bachelor’s degree and five years of related work experience. Recognised related fields include law, governance, management, and secretariat-related functions.
The regulation requires newly appointed company secretaries to complete a training programme conducted by the Capital Market Development Authority within six months of taking office. Their performance will be evaluated annually through an appraisal process overseen by the company’s board.
Grounds for disciplinary action include failure to fulfil responsibilities, negligence, misuse of power or resources, and breaches of the company’s code of conduct. Dismissal of a company secretary can only be carried out through a majority decision of the board at a formal meeting.
The regulation came into effect on Tuesday. There are currently more than 30 state-owned companies in the Maldives. These enterprises continue to face scrutiny over rising costs, mounting debt, and growing concerns that they are often used for political purposes.
