Muizzu Ratifies the Amendment to the Companies Act

President Dr Mohamed Muizzu has ratified the first amendment to the Companies Act (Act No. 07/2023) yesterday.

Parliament passed the bill at its third extraordinary sitting held on Tuesday, September 17, 2024.

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Under the amended Act, the 21-day deadline to send out invitations for meetings, as mentioned in section 100, number a(1), has been reduced to a 3-day deadline, and the three-month deadline for holding the meetings mentioned in section 100, number a(2), has been reduced to ten days.

The bill amends section 100, number b(1), stipulating a 14-day prior notice for private companies to send invitations for Extraordinary General Meetings (EGM), reducing it to a 7-day prior notice. It also amends section 100, number b(2), stipulating a 14-day prior notice for public companies to send invitations for Extraordinary General Meetings (EGM), reducing it to a 7-day prior notice.

In addition, the amendment stipulates in Section 126(a) a ten-day deadline for appointing directors when instructed by the Registrar, compared to the previous 30-day period. It also stipulates in Section 126(b) a ten-day deadline for appointing a managing director when instructed by the Registrar, compared to the previous 30-day period.

The amendment has been published in the Government Gazette following the ratification and will take immediate effect.