The Attorney General’s Office (AGO) has revealed the new Companies Bill has been forwarded to the President’s Office for submission to the Parliament of the Maldives.
The AGO said the Companies Bill aims to establish a new legal framework for the establishment, registration, operation and termination of companies in the Maldives. Once approved and ratified, the bill would replace the current Companies Act of the Maldives.
Ministry of Economic Development had earlier stated the current Companies Act of the Maldives had been formulated 25 years ago, after which major changes have occurred in the operation of companies. The ministry highlighted the importance of a new Companies Act that is adaptable to modern changes and conducive for new investments.
The economic ministry had stated main five key areas were addressed during the draft of the new Companies Bill. This includes the removal of obstacles faced in improving the ranking of the Maldives in the Doing Business Index of the World Bank, resolving the difficulties faced in registration, operation and termination of companies and changing the legal framework of public companies to suit the formation of investment companies. The bill also aims to redevelop the legal framework of companies in accordance to modern legal practices, and to bring revolutionary changes to the provision of services by integrating electronic resources.
The economic ministry stated the new Companies Act will revolutionise the business environment of the Maldives and help to renew the interest of investors.