DOHA: As part of efforts to improving economic competitiveness and attracting private investments into the country, the Ministry of Economy and Commerce recently organised two sessions to familiarise public shareholding companies and public joint stock companies in Qatar with the New Commercial Companies’ Law, said a statement yesterday.
The first session titled “Public Shareholding Companies in the Context of the New Commercial Companies’ Law” took place on Tuesday. It brought together officials from the Ministry, Qatar Petroleum (QP) as well as representatives from Qatar Stock Exchange (QSE).
The second session titled “Public Joint Stock Companies in the Context of the New Commercial Companies’ Law” took place on Wednesday. It brought together officials from the Ministry of Economy and Commerce, Qatar University, Qatar Investment Authority, Qatar Financial Markets Authority (QFMA), Qatar Central Bank (QCB) and representatives from public joint stock companies. Discussions touched on 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 one year 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 QFMA commended the new commercial companies’ law and its corporate governance. Officials from the QCB also praised the Ministry’s constant coordination and direction toward corporations under the control of QCB as well as those under QFMA.
Furthermore, participants from public joint stock companies commended the new law for its application of international standards and requirements, in addition to help establish an innovative working environment. Likewise, the leadership and labour force of the Ministry were praised for their efforts in reaching out to stakeholders; businessmen, investors and business owners.
In a related development, the Ministry also plans to execute a series of informative sessions on the new commercial companies’ law. The following session is scheduled to take place next Monday. The new law incorporates governance-related decisions issued by the Ministry, 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 law is part of a comprehensive plan by the Ministry to reform legislation and streamline incorporation procedures for companies in a bid 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.
The Peninsula
