Cabinet approves mandating reasons of amended companies draft law

AMMAN — The Cabinet on Sunday approved the mandating reasons of the amended companies draft law for 2017 and sent it to the Legislation and Opinion Bureau to be endorsed according to national regulations, the Jordan News Agency, Petra, reported. 

The amendments were made to ensure that companies commit to implementing the guidebook on corporate governance principles that regulate the relations between business owners in companies, in accordance with best international practices. 

The amended bill seeks to ensure the rights of the minority of shareholders, including creditors, which will contribute to improving Jordan’s ranking in international reports on business environment and practices. 

The bill will also contribute to boosting economic growth and stimulating companies through facilitations based on new measures that provide necessary requirements to establish venture capital companies, which is capital provided to start ups in accordance with the recommendations of the Economic Policies Council and contributes to supporting current investments and to attract new ones, according to Petra. 

The draft law is set to help companies facing trouble rectify their status by allowing them to use statutory reserves to stop their losses. 

The bill also works on forbidding individuals from being president of a company’s board of directors while also having the position of director general.