Company Establishment Procedures: S
Company Establishment Procedures: Set-Back in an Amendment of the Law Governing the Legal Profession
In the last week of June, an amendment was introduced in the Law Governing the Legal Profession Number 17 of 1983 (Amendment Issued as Law Number 197 of 2008).
The Amendment did not attract much attention outside the circle of legal professionals since its main provisions dealt with organizational matters within the Lawyers’ Syndicate (ahead of much heated and anticipated elections this fall).
Unfortunately, one exception to the above is contained in the amended Articles (59) and (60) of the Law, both affecting the procedures for company establishment. These procedures had been reduced – as a result of the establishment of the Investment Authority (GAFI)’s One-Stop-Shop in January 2005 – to an average of three days for the incorporation of companies. The new amendments introduce a new step into the process whereby documents required for the establishment of any joint stock company will now include a copy of the Power-of- Attorney, issued by the founders to the company’s attorney. This copy must be authenticated and stamped by the Lawyers’ Syndicate Regional Office to which that attorney belongs.
The effect of the above means that an additional step will need to be taken outside of the GAFI One-Stop-Shop, thus increasing the time required for company establishment by a few days. There may be other secondary consequences; accountants and auditors will find it increasingly difficult to continue to perform the service of company establishment and will have to rely on outside or in-house lawyers to do that.
In the last week of June, an amendment was introduced in the Law Governing the Legal Profession Number 17 of 1983 (Amendment Issued as Law Number 197 of 2008).
The Amendment did not attract much attention outside the circle of legal professionals since its main provisions dealt with organizational matters within the Lawyers’ Syndicate (ahead of much heated and anticipated elections this fall).
Unfortunately, one exception to the above is contained in the amended Articles (59) and (60) of the Law, both affecting the procedures for company establishment. These procedures had been reduced – as a result of the establishment of the Investment Authority (GAFI)’s One-Stop-Shop in January 2005 – to an average of three days for the incorporation of companies. The new amendments introduce a new step into the process whereby documents required for the establishment of any joint stock company will now include a copy of the Power-of- Attorney, issued by the founders to the company’s attorney. This copy must be authenticated and stamped by the Lawyers’ Syndicate Regional Office to which that attorney belongs.
The effect of the above means that an additional step will need to be taken outside of the GAFI One-Stop-Shop, thus increasing the time required for company establishment by a few days. There may be other secondary consequences; accountants and auditors will find it increasingly difficult to continue to perform the service of company establishment and will have to rely on outside or in-house lawyers to do that.