US presidential envoy to Iraq and administrator of the occupying Coalition Provisional Authority (CPA) Paul Bremer signed into law an order that will revise Iraq Company Law of 1997.
The new law creates a modern legal environment that eliminates many of the avenues of corruption used by the former regime. Both the Minister of Finance and the Finance and Planning Committee of the Iraqi Governing Council were consulted and their approval given, reported a press release.
The revised law eliminates restrictive barriers to the formation of corporations, encourages the infusion of capital into existing Iraqi companies, removes the remnants of Iraq’s centrally planned and controlled economy, and officially opens the door for foreign investment in Iraq by making the Company Law consistent with a CPA order on foreign investment.
Important changes to the company law include ensuring substantially equal treatment of foreign investors with local nationals for purposes of establishing entities and reducing the steps and time necessary to form companies and requiring the Registrar of Companies to act within set time periods in processing company formations and recapitalizations.
Individuals will now be able to form single member limited liability entities and limits will be removed on the percentage of shares that a single shareholder can hold with respect to Iraqi private sector joint stock companies. Companies will no longer has to conform with state planning goals as a condition for approvals. — (menareport.com)
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