Senate endorses amended Corporate Law, Law on Monitoring Economic Activities

AMMAN — The Senate on Thursday endorsed the amended Corporate Law and the Law on Monitoring Economic Activities, as referred from the Lower House.

Acting President of the Upper House Senator Marouf Bakhit chaired the session attended by Cabinet members, the Jordan News Agency, Petra, reported.

So far, the two Houses of Parliament have endorsed amendments to 13 laws out of 16 recommended  by the Royal Committee for Developing the Judiciary and Enhancing the Rule of Law since a Royal Decree commenced the extraordinary session on July 4. 

The three remaining draft laws are the placement of movable property to secure debt, the two amendments to the Arbitration Law and the Land Registration Fees Law.

The agenda of the extraordinary session included amendments to the laws of the independence of the judiciary, the formation of regular courts, civil trials, penalties, grand criminal court, criminal trials, evidence, execution, arbitration, mediation of civil disputes, and corporate and registration fees, Petra reported. 

The agenda also included the laws of magistrates’ courts, the management of state cases, the placement of movable property to secure debt, and monitoring and inspection of economic activities.

The Senate recommended that the government issue a comprehensive guide for all companies, covering the rules of general governance, restrictions on the governance of companies in the banking and insurance sectors, as well as public shareholding companies, government-owned companies and public and private shareholding companies with a capital of more than JD500,000, Petra said.

The Upper House also recommended holding workshops on methods of applying the Corporate Law.

The amended Corporate Law allows venture capital companies to be established in Jordan, provided that a regulation is issued to managing this company, its capital, work, management, distribution and liquidation. 

The venture capital company is established for the purpose of direct investment or the establishment of funds to contribute and invest in the capital of companies with high-growth potential, whose shares are unlisted in the financial market, in return for receiving revenues when selling its shares in the capital of the company it has invested in, Petra noted.

The law allows the use of a “mandatory reserve” to relieve the losses of limited liability companies, private equity companies and public shareholding companies, and grants the minister of industry, trade and supply the power to issue instructions regarding redeemable shares usually issued by private shareholding companies. 

The law also regulates the relationship between stakeholders in these companies.

Under the amended Law on Monitoring Economic Activities, a higher committee for the development of inspection of works will be formed, according to the news agency. 

The law unifies inspection codes and limits overlap and duplication of powers and functions of official authorities concerned with the monitoring and inspection of economic activities, without cancelling the role of any regulatory authority. 

The sectors that will see the unifying of regulations include: public health, food and drug safety, workers’ rights, environment, market and product survey, and fire safety, Petra added.