The Maldivian Democratic Party (MDP)'s Parliamentary Group Leader and Hithadhoo South MP, Ibrahim Nazil, has accused the government of attempting to amend the Companies Act to enable the "mass termination" of company board members.
On behalf of the government, Feydhoo North MP Ismail Nizar moved an amendment to the Companies Act to shorten the timeframe for holding company general meetings. Under the existing Companies Act, invitations for a special general meeting must be issued within 21 days of receiving the request, with the meeting taking place within three months. However, the proposed amendment would require companies to issue an invitation within three days and hold the meeting within 10 days of the request. Additionally, the amendment seeks to reduce the notice period for private and public companies to inform their members of a special general meeting from 14 days to seven days.
In an extraordinary parliamentary sitting held today to debate the bill, MP Nazil said the government was forcing CEOs and directors of companies to resign. Noting that the current law already allows companies to hold special general meetings within the timeframe required by the government, he said the proposed amendments give a look into a future where a widespread termination of board directors and company heads would result in the collapse of companies.
"Companies will be destroyed. There will be no qualified academics or capable people on the boards, only politicians, and this will ruin the companies," Nazil warned.
