THE finalised Companies Decree is expected to clearly define roles and duties of company directors and set out requirements for the registration of companies.
Speaking at the third public consultation on the draft decree at the Novotel Conference Centre in Lami this week, Attorney General Aiyaz Sayed-Khaiyum said there would be some transitional provisions for the decree to take effect.
"There are some fundamental issues that will be changed and these will relate the fiduciary duties of the company directors vis a vis the companies," he said at the final forum.
"We need to bring these duties in step with the best international practice within the region. Australia has provided some of the provisions for this. We're also looking at the registering of the companies, the need to get away from the requirement of minimum two members and the distinction between public and private companies."
The draft decree states both public and private companies would have to register with the words 'Limited or Ltd' and 'Pte Limited or Pte Ltd' at the end of its name respectively.
Consultant Bruce Cowley, who is a law partner at Minter Ellisson in Brisbane, has been working on the changes to the new decree with his team.
Mr Cowley said the open consultation allowed the business community and the public to voice their opinons on the legislation.
He said the old Companies Act was outdated and the draft document included best practices from around the world.