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Parliament Passes Commercial Code Unanimously

March 25 , 2021

Members of parliament have ratified the Commercial Code earlier today, marking the first time in over six decades that the Code has seen any major revisions.

Revised after 62 years, the new Code allows for the legal recognition of holding companies and single member companies, as well as allowing virtual shareholder meetings.

The new Code also introduces a variety of insolvency procedures in addition to bankruptcy, including preventive restructuring proceedings and simplified reorganisation proceedings.

It also incorporates new clauses that provide protection for minority shareholders on corporate transparency and disclosure, improved rights, and more stringent stipulations of responsibilities on the part of corporate boards.

The changes made are expected to improve the ease of doing business in the country.

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