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The Shura Council has approved a draft law on commercial companies issued under Law No 11 of 2015 and referred its recommendations to the government.
The Shura Council, chaired by Speaker HE Ahmed bin Abdullah bin Zaid Al Mahmoud, on Monday reviewed the report of the Financial and Economic Affairs Committee regarding a draft law amending some provisions of the Commercial Companies Law.
The amendment of some provisions of the commercial law is aimed at enhancing the ease of capital flow, removing obstacles, reducing time and cost, diversifying non-oil income, developing market movement, and enhancing international competitiveness in the field of establishing and operating companies.
The draft law has also added new provisions for the purposes of achieving the requirements of anti-money laundering and combating the financing of terrorism stipulated in the Law No 20 of 2019 on combating money laundering and terrorism financing.
The amendments stipulate that the Minister of Commerce and Industry shall issue decisions regulating governance for private joint-stock companies.
As for companies listed in the financial market, the authority shall issue decisions regulating their own governance, provided that the Board of Directors of the company is committed to implementing the aforementioned governance decisions, taking into account that the companies’ incorporation documents do not contain anything that contradicts those decisions. The amendments in the draft law specifies how the members of the company’s board of directors should be elected and the requirements that must be met by a member of the board of directors.
The amendments includes replacing some phrases and introducing definitions, in addition to the procedures for the meetings of the boards of directors of companies and their general assemblies. They also stipulate the possibility of holding the general assembly of the company through modern technology in accordance with the rules determined by the Ministry of Commerce and Industry.
The report of the Financial and Economic Affairs Committee includes a detailed presentation of the draft law, amendments and additional articles to the Commercial Companies Law, justifications for amendment and addition, and the committee inquiries to officials at the Ministry of Commerce and Industry, and the answers it received.
The Shura Council also discussed a draft law on mortgaging movable funds.
The draft law, which includes 9 chapters and 49 articles, aims to give companies and individuals the opportunity to acquire bank loans guaranteed by mortgaged movables and contribute to lowering the cost of loans by finding guarantees for banks that reduce the risk of default.
The move will benefit small and medium-sized enterprises in playing a major role in enhancing the local economy.
The draft law also includes provisions related to the scope of application, establishing an electronic record at the Qatar Central Securities Depository (QCSD) and data needed to be recorded, establishing the right to mortgage and its entry into force, and establishing the rights of mortgagee.
After discussion, the Shura Council decided to refer the Draft Law to the Financial and Economic Affairs Committee to study it and submit a report thereon to the council.
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