New Companies Act operational

Irangika Range

COLOMBO: The enactment of the new Companies Act No.7 of 2007 will facilitate the easy registration of new companies in just one day if the name has been approved earlier, Trade, Marketing Development, Cooperatives and Consumer Affairs Minister Bandula Gunawardana said yesterday.

“It is a major step in the right direction to provide a much warranted corporate culture and environment to build the private sector,” Minister Gunawardana said.

Announcing the implementation of the new Companies Act from yesterday, the Minister said that the new Act is user friendly and would enable online registration of companies in the near future. He said the Act was enacted with unanimous support and endorsement by all political parties in Parliament.

“In as much as those who hold public office are bounden in law to protect the people, the same onus falls on those who hold office as Directors of companies, to protect the resources of the shareholders and stakeholders and therefor directors holding office cannot avoid accountability and responsibility,” he said.

The new Act will also protect Single Shareholder companies. It will really benefit SMEs who may be apprehensive to face business risks to set up their own business. The Act provides special benefits to streamline Single Shareholder companies.

He said that another feature of the Act is the establishment of a Companies Dispute Board (CDB) consisting of not less than three and not more than five members, appointed by the Minister, with substantial experience in law and administration of companies.

This Act can adopted for the development of Government owned companies. It streamlines the mechanism of the management of properties and investment. Each company should be registered under the new Act.

The Minister said it is essential to crete an extensive dialogue among the Universities, chambers, Chartered Accountant Institutes to create public awareness.