Local authority company — selected practice notes
1–5 of 5 practice notes · curated starting points; shared topics remain in the full contents
10. Local authority company
A local authority company is formed by one or more councils for economic activities within council jurisdiction and basic-needs responsibilities.
Subject: Choosing the company vehicle
Key point: Ownership and purpose derive from the council framework in section 7.
17. Registering Government and local authority companies
Formation must reconcile the Companies Act application with the instrument and approvals that create or authorise the public body company.
Subject: Formation and registration
Act references: s. 15; s. 16; s. 20; s. 22; s. 23; s. 24; s. 25
Key point: A Government company may be established by decree or statute and registered under the Act.
43. Board composition and Managing Director
Every company needs a Managing Director; minimum director numbers vary by company type and the constitution or constituting law may require more.
Subject: Directors, governance and secretary
Act references: s. 113; s. 114
Key point: Private companies require at least one director, public companies at least two, and Government/local authority companies at least three.
52. Company Secretary
Private companies are generally exempt; other company types require a qualified Company Secretary and timely change filings.
Subject: Directors, governance and secretary
Act references: s. 141; s. 142; s. 143; s. 144; s. 145; s. 146
Key point: Every company other than a private company must always have a Company Secretary.
73. Annual compliance cycle
Annual compliance is a connected production line: books, statements, audit where applicable, board approvals, meeting pack, AGM and post-AGM filings.
Subject: Accounts, audit and annual compliance
Act references: s. 91; s. 92; s. 93; s. 94; s. 95; s. 96; s. 97; s. 136; s. 180; s. 181; s. 182; s. 183; s. 184; s. 185; s. 186; s. 187; s. 188
Key point: Board meetings occur at least four times each year.
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.