Malawi Parliament sitting in the capital city, Lilongwe, has passed companies bill.
Presenting the bill the Minister of Industry and Trade Sosten Gwengwe said it will among others facilitate ease of incorporation especially for small private companies and protect investors especially the minority interest, both domestic and international by making more elaborate the duties and liabilities of directors.
The bill will also ensure that there is adherence to good corporate governance in the day to day running of the companies.
“It is there to ensure compatibilities with general accepted international accounting standards. The bill minimizes the complexity and ensures that the law keeps pace with market developments and business practice,” Gwengwe explained.
The minister added that in trying to achieve objective of easy incorporation for company bill, it (bill) allows for the incorporation of small ‘one person’ private companies by minimizing the complexity associated with registering and reporting requirements of such companies.
Gwengwe said most importantly, the bill imposes civil sanctions for failure to comply with the core duties and the code of corporation governance.
“The bill also imposes stringent new obligations of disclosure in relations to directors of public companies as to their interests and remuneration in their service contracts,” he said.
Members of the House said they are happy with the bill as among other areas it will create more jobs to the youth and increasing the number of investors.—Malawi News Agency