MUSCAT : The Financial Services Authority (FSA) has issued a circular to all public joint-stock firms and investment funds, requiring them to submit the announcement of the general assembly meeting invitation for the Authority’s approval at least seven (7) working days prior to the start of the legally prescribed publication period, which is no less than fifteen (15) days before the scheduled date of the meeting, in accordance with the provisions of the Commercial Companies Law.
The circular came following the Authority’s observation that some companies and funds had been submitting general assembly invitations for approval within timeframes that do not allow sufficient opportunity for the Authority to review the agenda items and ensure their compliance with applicable laws and regulations before they are circulated to shareholders.
The FSA also emphasised the importance of submitting the invitation announcement, including the agenda, through the approved channels, and ensuring that all required documents are fully completed. It further emphasised that all enquiries and correspondence related to general assemblies must be conducted exclusively through the officially designated email address.
In its Circular No. (6/2025), the FSA explained that this measure forms part of ongoing efforts to enhance the regulatory standards governing the convening of general assemblies, particularly during the annual general assembly season for most public joint-stock companies and investment funds whose financial year ends on 31 December each year.
The FSA confirmed that responsibility for complying with the specified timelines rests with the companies, investment funds, and their legal advisers, given the role of these requirements in ensuring the soundness of legal procedures, protecting the rights of shareholders and unitholders, and reflecting the central role of general assemblies within the corporate governance framework and in the adoption of key decisions.
It is worth noting that the role of the FSA includes regulating the convening of general assemblies by organizing their timelines, reviewing, and approving shareholder invitation announcements, thereby ensuring adequate protection for shareholders to exercise their legitimate rights.
