President Dr. Mohamed Muizzu Ratifies First Amendment to Companies Act

News

President Dr. Mohamed Muizzu has ratified the first amendment to the Companies Act (Act No. 07/2023), streamlining several procedural deadlines related to company meetings and appointments. The Parliament passed the bill at its third extraordinary sitting held on Tuesday, September 17, 2024, and the amendment has now been published in the Government Gazette, taking immediate effect.

Key changes introduced under the amended act include:

1. Meeting Invitations: The 21-day deadline for sending out invitations for meetings under Section 100(a)(1) has been reduced to just 3 days. Additionally, the three-month deadline to hold meetings under Section 100(a)(2) has been shortened to 10 days.
2. Extraordinary General Meetings (EGM): The amendment reduces the prior notice period for sending invitations to EGMs. Private companies are now required to send out invitations 7 days in advance, down from the previous 14 days, as per Section 100(b)(1). Similarly, public companies must also provide a 7-day notice, replacing the earlier 14-day notice requirement under Section 100(b)(2).
3. Director Appointments: Section 126(a) stipulates a reduced 10-day deadline for appointing directors when instructed by the Registrar, a change from the previous 30-day period. Likewise, Section 126(b) mandates a 10-day deadline for appointing managing directors, down from 30 days.

These amendments aim to enhance the efficiency and responsiveness of company operations by expediting key processes related to governance and management appointments.