(MENAFN- Gulf Times) The Ministry of Economy and Commerce organized two sessions to familiarize public shareholding companies and public joint stock companies in Qatar with the New Commercial Companies' Law.
The first session titled "Public shareholding companies in the context of the New Commercial Companies' Law" took place on November 17. The session brought together officials from the Ministry of Economy and Commerce, Qatar Petroleum as well as representatives from Qatar Stock Exchange.
The second session titled "Public joint stock companies in the context of the new Commercial Companies' Law" took place on November 18. The session brought together officials from the Ministry of Economy and Commerce, Qatar University, the Qatar Investment Authority, the Qatar Financial Markets Authority, the Qatar Central Bank and representatives from public joint stock companies.
Both sessions fall under the Ministry's wider plan to familiarize companies and the general business sector with the New Commercial Companies' Law No.11 for 2015 in order to boost Qatar's economic competitiveness and attract private investments into the country.
Discussions touched upon the new legislations pertaining to public shareholding companies and public joint stock companies and the required legal measures to be taken in accordance with the provisions of the new commercial companies' law.
Public joint stock companies are required under the new law to list on the stock exchange within a one-year period or switch to a private joint-stock company. In addition, the law compels public joint stock companies to launch an initial public offering within 60 days from the date of incorporation.
The nominal value of shares, which was set under the old law at QR10, was also revised and fixed between QR1 and QR100.
Participants also highlighted how the new law streamlines incorporation procedures by allowing joint stock companies to task experts with the valuation of in kind donations without the need to obtain court approval.
The session was followed by a Q&A session during which speakers elaborated on the international standards adopted in the new commercial companies' law.
Representatives from the QFMA commended the New Commercial Companies' Law and its corporate governance. QCB officials also praised the Ministry of Economy and Commerce's constant coordination and direction toward corporations under the control of the QCB as well as those under the QFMA.
Furthermore, participants from public joint stock companies commended the new law for its application of international standards and requirements, in addition to helping establish an innovative working environment. Likewise, the leadership and labor force of the Ministry of Economy and Commerce were praised for their efforts in reaching out to stakeholders; businessmen, investors and business owners.
The Ministry of Economy and Commerce also said it plans to hold a series of sessions on the New Commercial Companies' Law. The next session is scheduled to take place next Monday.
The new law incorporates governance-related decisions issued by the MEC, the QFMA and the QCB. The governance-related provisions help protect shareholders interests and achieve greater transparency when it comes to actions taken by boards of directors.
The New Commercial Companies' Law is part of a comprehensive plan by the ministry to reform legislation and streamline incorporation procedures for companies to bolster the private sector's contribution to sustainable development in Qatar. The new 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.
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