Bill mandating parliamentary approval for Managing Directors rejected

Parliament today rejected an amendment to the Companies Act proposed by Republican Party MP Ibrahim Muttalib stipulating that the President must seek parliamentary approval before appointing Managing Directors for public companies and state-owned enterprises.

Of the 68 MPs in attendance, only 16 MPs voted in favour of the amendment while 49 voted against and three abstained.

The amendment was severely criticised by MPs of the ruling Maldivian Democratic Party (MDP) as the latest in a series of bills intended to wrest control from the executive and undermine presidential prerogatives.

Several opposition MPs also argued that the amendment would threaten the independence of public companies, claiming that a single amendment was not enough to overcome the shortcomings of the existing Companies Act.