Company Law to be updated, says finance ministry

A tender with an estimated value of €2 million for the preparation of a modernised bill and regulations covering the outdated companies’ law was  announced by the finance ministry on Tuesday with the aim of improving business and the competitiveness of the economy.

The announcement, which is included in the Recovery and Resilience Plan, has been approved by the council of ministers. The closing date for the submission of tenders is May 26.

The purpose of the reform initiative is to improve business and economic competitiveness in line with international best practices in the field of company law, the ministry of finance said.

According to an announcement, the initiative is the outcome of a collaborative effort between public and private bodies including the ministry of energy, trade and industry, the registrar of companies and official receiver, the legal service, the commissioner of legislation, the association of certified public accountants and the bar association.

The ministry of finance emphasised that the modernisation of company law is a priority of the government as the existing legislative framework is based on the 1948 British Company Law.

“[This] outdated legal framework must be updated and adapted to the modern needs of the business environment, in response to domestic and international legal requirements,” the announcement said.