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Corporate lawyers are hoping a draft Company Law abandoned a few years ago will be enacted this year. The law, modeled on the New Zealand Companies Act incorporating international law principles was abandoned as some experts thought it was inconsistent with the country’s other laws.
Over a decade after first being proposed a new Companies Law could be introduced later this year that is expected to improve corporate governance and remove restrictions on businesses.
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The debate and drafting of a new act to replace the current one started in 1993.
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Lawyers say the current law, passed in 1982, is outdated and restrictive.
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The Companies Act of 1982 was modeled on British Companies Legislation of 1948.
Experts say the current draft, which was abandoned by the previous government but reactivated recently, will improve corporate governance.
"Under the article of any company under the law, the management of a company is in the hands of the board of directors. There may be nominees of stron