Reform of the companies act for a modern business landscape |11 June 2016

Key stakeholders from financial services and industries like accountants, lawyers, tax agents, among others, met this week to create a new Companies Act for a modernised business landscape.

The new act will replace the old one which came into force 44 years ago.

The aim of the workshop, held at the Eden Bleu conference room, was to give a timely boost to the economy. A new company’s act is important to the Seychelles economy, and in particular to small and medium enterprises.

The project management team which comprises officers from both the government and private sectors, like the Seychelles Chamber of Commerce and Industry (SCCI), the Accounting Association, the Bar Association, Entrepreneurship and Business Innovation, the Company Registrar, saw the need to build a new and dynamic companies act.

Present at the workshop was the chairman of the committee responsible for the Companies Act Dr Steve Fanny, the SCCI chairman Wilson Nancy, among other guests.

Dr Fanny stated that the new Companies Act will create a better environment for all parties.

“This new Companies Act will contain better policies which will regulate the working of companies, citing the legal limits within which companies may do their business. The Companies Act needs to be reformed today to take into account the current changes in the global economy,” he said.

He noted that Seychelles have been using the same Companies Act since 1972.

“The Seychelles Companies Act dates back to 1972, and today we are in 2016 and we are still using it, it has stood the test of time. But we believe that there have been many changes in accounting and finance, so we have to implement those new changes,” he added.

During the workshop Dr Samuel Etukakpan made a presentation on a draft Companies Bill, 2016.

The new Companies Act will probably be ready by the end of this year, along with a simple document for ordinary people which will provide them with basic ideas on how to fully register a business.

It is also good to point out that attempts to reform the Seychelles Companies Act in 1995 and 2009 were not successful.