Malé, Maldives – The People's Majlis, the parliament of the Maldives, held an extraordinary session during recess to discuss key amendments to the Company Act proposed by the government. The amendments come at a crucial time when the government is grappling to assert control over the governing board of the Bank of Maldives (BML).

Among the proposed changes are:

1. Reducing the time limit for companies to issue an invitation for an extraordinary meeting after a request by board members from 21 days to just 3 days.

2. Shortening the time frame for holding an extraordinary meeting, which is currently within 3 months, to only 10 days.

3. Cutting the notice period for extraordinary meetings for both private and public companies from 14 days to 7 days.

4. Allowing companies to specify the minimum number of shareholders in their Articles of Association, which the current Company Act does not explicitly address.

These proposed amendments follow recent tensions between the government and BML after the bank limited foreign transactions of its cards on August 25, 2024, citing a dollar shortage. The move, which severely restricted Maldivians' ability to use the cards abroad, was made against direct government instructions. President Dr. Mohamed Muizzu and senior ruling party officials condemned BML’s decision as an "attempted coup," leading to a police investigation. Following the incident, BML CEO Karl Stumke moved to Dubai and resigned after a week.

This extraordinary session marks the second held by the parliament during its recess. On September 11, 2024, MPs gathered to announce the president's nominee for the role of Prosecutor General, after the previous Prosecutor General, Hussein Shameem, was dismissed last month.

A third extraordinary session is expected to be held, during which the Majlis will vote on the amendments to the Company Act and on the appointment of Abbas Shareef as the new Prosecutor General.

The proposed amendments to the Company Act reflect the government’s efforts to streamline corporate governance at a time of significant economic and political strain. The changes, if passed, could affect the dynamics of board control within companies, including BML, as the government seeks to assert greater influence over strategic decisions in the nation's leading financial institution.