The Government has proposed significant amendments to the Companies Act to accelerate the appointment process for managing directors and directors, and to shorten the notice periods for calling general meetings.

These amendments, introduced by North Feydhoo,MP Ismail Nizar, are scheduled for debate in Parliament tomorrow following an initial reading earlier this month.

Under the current law, the Registrar of Companies has up to 30 days to mandate the appointment of new managing directors and directors when a vacancy arises. The proposed changes would reduce this timeframe to just 10 days, allowing for quicker appointments and minimizing disruptions in corporate leadership.

The amendments also target the notice periods required for convening general meetings. Presently, companies must give 21 days' notice after a request for a meeting is received. The proposed changes aim to shorten this notice period to just three days, enabling a faster response to shareholder or board member requests. For extraordinary general meetings, the current 14-day notice period would be reduced to seven days, allowing companies to address urgent issues more promptly.

These amendments are part of a broader effort to modernize the Companies Act, which was recently updated to replace outdated legislation. The goal is to streamline corporate governance and help companies better navigate dynamic business environments.