Chapter 2 — Types of Companies
1–17 of 17 provisions
Section 3 — Types of Companies
Chapter: 2 — Types of Companies
The following types of companies may be formed under this Act— (a) private company; (b) public company; (c) government company; and (d) local authority company.
Text status: Unofficial English translation.
Section 4 — Private Company
Chapter: 2 — Types of Companies
A private company is any company that is not a public company and that is— (a) formed by one or more persons as a private company in accordance with sections 9 to 11 of this Act; or (b) registered under sections 29 to 31 of this Act.
Text status: Unofficial English translation.
Section 5 — Public Company
Chapter: 2 — Types of Companies
A public company is any company that is not a private company and that— (a) is authorised, or has applied for authorisation, to sell shares, debentures or bonds to the public; and (b) is— (1) formed as a public company in accordance with sections 12 to 14 of this Act; or (2) registered under…
Text status: Unofficial English translation.
Section 6 — Government Company
Chapter: 2 — Types of Companies
A government company is a company— (a) formed by a decree of the President or by an Act passed by the People’s Majlis; (b) in which all shares comprising the company’s capital are registered in the name of the Government; and (c) registered in accordance with section 22 of this Act.
Text status: Unofficial English translation.
Section 7 — Local Authority Company
Chapter: 2 — Types of Companies
A local authority company is a company formed by one or more local councils, as defined in the Decentralization Act of the Administrative Divisions of the Maldives, for the purpose of carrying out economic activities within the jurisdiction and responsibilities of the council in order to fulfil the…
Text status: Unofficial English translation.
Section 8 — Foreign Investment Company
Chapter: 2 — Types of Companies
(a) A foreign investment company, whether a private company or a public company, means— (1) a company any share of whose capital is registered in the name of a foreign individual or foreign entity; or (2) a company any share of whose capital is registered in the name of a company referred to in…
Text status: Unofficial English translation.
Section 9 — Characteristics of a Private Company
Chapter: 2 — Types of Companies
A private company is a company that has the following characteristics— (a) it has a specified share capital consisting of one or more shares; (b) it has a minimum of one member and a maximum of 50 members; (c) it has one or more directors; and (d) its constitution states that it is a private…
Text status: Unofficial English translation.
Section 10 — Members of a Private Company
Chapter: 2 — Types of Companies
Unless otherwise prohibited by law, and subject to the applicable provisions of law, the following may become members of a private company— (a) individuals; (b) the Government; and (c) legal entities, whether a company, partnership, state institution, local council or association incorporated as…
Text status: Unofficial English translation.
Section 11 — Liability of Members for Private Company Debts
Chapter: 2 — Types of Companies
The liability of a member for the debts of a private company is limited to any amount unpaid on the shares purchased, or agreed to be purchased, by that member and allotted to that member by the company. Public Company
Text status: Unofficial English translation.
Section 12 — Characteristics of a Public Company
Chapter: 2 — Types of Companies
A public company is a company that has the following characteristics— (a) it has one or more members; (b) it is authorised, or incorporated with the intention of seeking authorisation, to sell shares, debentures, bonds or other securities to the public; and (c) its constitution expressly states…
Text status: Unofficial English translation.
Section 13 — Members of a Public Company
Chapter: 2 — Types of Companies
Unless otherwise prohibited by law, and subject to the applicable provisions of law, any person or entity eligible to become a member of a private company under section 10 of this Act may also become a member of a public company.
Text status: Unofficial English translation.
Section 14 — Liability of Members for Public Company Debts
Chapter: 2 — Types of Companies
The liability of a member for the debts of a public company is limited to any amount unpaid on the shares purchased, or agreed to be purchased, by that member and allotted to that member by the company. Government Company
Text status: Unofficial English translation.
Section 15 — Government Companies Established by Presidential Decree
Chapter: 2 — Types of Companies
Where a government company is established by a Presidential Decree, the Decree must specify the name, objectives and amount of capital of the company and state that the company is wholly owned by the Government. The articles of association of the company must also be included in the Decree.
Text status: Unofficial English translation.
Section 16 — Government Companies Established by Statute
Chapter: 2 — Types of Companies
A company established by an Act passed by the People’s Majlis is governed by the principles set out in the Act by which it is established. Where that Act does not prescribe specific procedures for the operation of the company, the principles provided for in this Act apply, unless otherwise…
Text status: Unofficial English translation.
Section 17 — Government Liability for Debts
Chapter: 2 — Types of Companies
The liability of the Government for the debts of a government company is limited to any amount unpaid on the share capital of the company, unless the Act or Decree establishing the company otherwise provides in relation to the Government’s liability for those debts.
Text status: Unofficial English translation.
Section 18 — Application of Private Company Principles in the Absence of Specific Provisions
Chapter: 2 — Types of Companies
Where this Act does not make specific provision for government companies, and unless otherwise prohibited by another law, the principles applicable to private companies under this Act apply to government companies. LOCAL AUTHORITY COMPANIES
Text status: Unofficial English translation.
Section 19 — Application of Rules Governing State-Owned Enterprises in the Absence of Specific Legal Provisions
Chapter: 2 — Types of Companies
(a) Unless otherwise provided in this Act or in regulations made under it, the formation, registration and operation of a local authority company shall be carried out in accordance with this Act and the regulations made under it. (b) Where this Act does not prescribe specific rules for local…
Text status: Unofficial English translation.
This page is a general research and practice aid. The translations used in this manual are unofficial. Verify the official Dhivehi legislation, amendments and current procedures before relying on any entry. Read our sources and verification guidance and contact a lawyer at Sulthan & Amhar for advice on your circumstances before relying on this material or taking action.