The ministry officials outline the provisions of new commercial companies’ law. Public joint stock companies should launch an IPO within 60 days from the date of incorporation and public and private joint stock entities as well as limited liability firms should appoint auditors, according to the new law.
By Santhosh V Perumal
Business Reporter
Qatar has said the enforceability of liability lawsuits against members of the board of directors has been reduced to three years from the date the general assembly issues a resolution, approving the board’s report, against the previous stipulation of five years.
Moreover, public joint stock companies should launch an initial public offering within 60 days from the date of incorporation and that public and private joint stock entities as well as limited liability firms should appoint auditors.
These were some of the highlights at a meeting of the Ministry of Economy and Commerce with the representatives of Qatar Lawyers Association and Qatar University wherein they discussed the provisions of new commercial companies’ law.
The Ministry of Economy and Commerce organised a session, which is the fourth in the series, to familiarise auditors and lawyers in Qatar with the provisions of the new commercial companies’ law.
Discussions touched on the new legislations pertaining to the incorporation of public and private joint stock companies and the required legal measures to be taken by companies in accordance with the provisions of the law.
The move to reduce the period of enforceability of liability lawsuits is aimed at bringing in more certainty, especially at a time when Qatar - which has been upgraded to emerging markets by global index compilers MSCI, Standard & Poor’s-Dow Jones and FTSE – is looking towards more foreign investments.
According to the provisions of the new law, auditors are required to attend ordinary and extraordinary general assembly meetings, thereby reinforcing their supervisory role and enhancing transparency.
The new law is part of a comprehensive plan by the ministry to reform the legislation and streamline incorporation procedures for companies in a bid to bolster the private sector’s contribution to sustainable development in Qatar.
Both lawyers and auditors applauded the new law, saying it supports their supervisory role.
The new law is primarily aimed at bolstering Qatar’s economic competitiveness and attracting private investments into the country.
The law incorporates international standards applied in determining the ranking of countries in terms of the ease of doing business to support investors through the establishment of a business-friendly environment.
In an earlier interaction with the officials from the Qatar Investment Authority, the Qatar Financial Markets Authority, the Qatar Central Bank and representatives from public joint stock companies, the ministry had said the new law requires that public joint stock companies should listed on the stock exchange within a one-year period or else switch to a private joint-stock company.
The nominal value of shares, which was set under the old law at QR10, has also been revised and fixed between QR1 and QR100.
