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Revamp Of 30-Year Old Company Act For Debate

Harsher sentences for the reckless breach of directors duties could be approved if amendments to the Companies Bill are approved  by Parliament. This was just one of the recommendations by
20 May 2015 10:32
Revamp Of 30-Year Old Company Act For Debate
Ashneel Sudhakar, Chairman of the Justice, Law and Human Rights Committee (right) with Secretary General to Parliament, Viniana Namosimalua. Photo: Parliamentary Media Unit

Harsher sentences for the reckless breach of directors duties could be approved if amendments to the Companies Bill are approved  by Parliament. This was just one of the recommendations by the Standing Committee on Justice, Law and Human Rights in their report on the Companies Bill, tabled in Parliament yesterday.

The committee focused on increasing the sentence for a breach of section 484, from 1 year to five years.

The section involves destruction or falsification of financial records and other company books.

Chairperson Ashneel Sudhakar reading from the foreword of the report pointed out that the amended legislation was necessary to accommodate the evolving business environment.

“The current Companies Act applicable in Fiji is over 30 years old which itself was based on much older UK laws therefore our law is more than half a century old. The current company Act was introduced in 1983 which was consolidated in 1985 in the laws of Fiji at Chapter 247. Fiji today needs company laws which are more up to date with the current trends and market requirements.”

Another  recommendation by the Committee to the Company Act that will be debated by Parliament at a later date include:

– Amendment of Section 19 to provide that the revenue levels for determining whether a company is a Small Medium or Large Private Company will be specified in the Companies Regulations from time to time.

Debate on these amendments will happen at a later date, to be determined by the Parliamentary Business Committee.

The members of the Standing Committee on Justice, Law and Human Rights are Semesa Karavaki (Deputy chair), Lorna Eden, Niko Nawaikula and Iliesa Delana.

Feedback:  litia.cava@fijisun.com.fj

 




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