While many aspects of the new Companies Act have been discussed at length (going back to the consultation periods), in this article we aim to bring a simplified view of the new Companies Act through a change matrix as companies switch from the old to the new, as shown in the tables below. We also provide insights on the capital raising requirements under the new Companies Act which we hope our readers will find interesting.
The shared regulatory roles on the Companies Act between the RBF and Registrar of Companies are clearly defined to allow both authorities to enforce the relevant parts of the Act working in conjunction with each other where necessary, and hopefully avoiding any form of duplication. Transitional laws that are in place will ensure that companies have time to adjust and comply with the new law that has come into effect from January 2016. However, it is worth noting the heavier penalties that apply due to non-compliance by the company, its directors or officers.
Overall the Companies Act lays a great foundation to pave the way forward for companies in Fiji. As policy frameworks in other areas continue to be developed and reviewed, we are hopeful that further reforms such as the digitisation of the Registrar of Companies records and the implementation of a secured transactions regime will follow suit to complement the new Companies Act. This will further improve the ease of doing business in Fiji and make it an even more attractive investment destination for foreign investors.
If your company requires any assistance in compliance with the Companies Act, especially in the areas of corporate governance, or internal policies relating to insider trading, conflict of interest, please feel free to contact us. We also welcome your feedback on any other aspects of this legislation that you would like us to cover in more detail in our next issue.
|Download the 'A new era for companies in Fiji' article here|
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