New Corporations Decree expected to be passed

A new Corporations Decree is expected to be passed in Fiji this year.

Former High Court Judge Nazhat Shameem said the decree will be modeled either on the New Zealand legislation or on the Australian Corporations Act.

Shameem said the current Fiji Companies Act does very little to hold companies accountable and other than the rule on disclosures of financial interests and a rule prohibiting trading after winding up, there is little guidance for company directors and officers in Fiji.

Shameem said the effect of the provisions of the Crimes decree 2009, on corporate conduct is still unclear as it only applies to offences committed after the 1st of February 2011.
 
She said with the new decree this is likely to change as it will create the business judgment rule, an investigative body for corporations and special powers to punish companies for breaches.

Former High court Judge Nazhat Shameem made the comments at the Certified Practicing Accountants Australia and Fiji branch Congress at the Sheraton yesterday.


Story by: Tokasa Rainima and Sofaia Koroitanoa