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News

Expect changes to company decree

December 8, 2012 7:02 pm

A lot of changes should be expected soon as to how companies are run and set up in the country.

The new Company Decree of 2012 which will replace the current Company Act will be enforced by early next year.

A major change will be the number of people that’s required to form a company.

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Current laws require seven or more persons to form a public company and two or more persons for a private company.

Under the new Decree, all companies whether public or private should have at least one member.

“I know the benefit of having a one shareholder company of course is in the case of a corporate group we you’ve got subsidiary companies so until know if you have had the subsidiary you also had to have a number of other shareholders – now we don’t have to do anymore once the Decree is adopted. One Holding Company can be the sole shareholder in all its subsidiary companies.”

Cowley has also highlighted there is no jail penalty for those who breach the Decree but only if it involves corruption practice.

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