Cabinet endorsees changes to Companies Law

AMMAN — The Cabinet on Tuesday approved a bill amending the Companies Law.

The draft law aims at organising the work of companies through regulations ensuring that corporate governance is applied, expanding the oversight powers of shareholders in public shareholding companies, prohibiting individuals from assuming the posts of board chairperson and CEO of the same company at the same time, the Jordan News Agency, Petra, reported.

The bill also provides for legal requirements necessary to establish venture capital companies — which are established for purposes of direct investment or for creating funds to contribute or invest in high-growth companies that are not listed in the stock market.

The draft law seeks to help stumbling firms rectify their situations, Petra added.