DTIS, Volume I - Enhanced Integrated Framework (EIF)

legislation incorporates the initial Law on Registration of Companies 25/82
updates and compliments the Law Governing Formation of Public Companies
23/79
• Law on foreign investment 1989 – the enabling Act for foreign investments in the
Maldives with descriptions and requirements for foreigners wishing to
Table 5.4: Credit information and investor protection (2004)
Subject
Indicator
Creditor & borrower rights
1 Cost to create collateral (% of income per capita) 8
Features of credit information system
No
2 Are both individuals and firms listed in credit registry No
3 Are both positive and negative data distributed No
4 Does the registry collect credit information form financial institutions as well as No
retailers and utilities providers
5 Are five of more years of historical data preserved No
6 Is data on all loans larger than 1% of income per capita registered No
7 Is it guaranteed by law that borrowers can inspect their data No
Credit information index 0
Credit registries coverage
8 Public credit registry coverage (borrowers per 1000 adults) 0
9 Private bureau coverage (borrowers per 1000 adults) 0
Protecting investors data
10 Is family ownership disclosed No
11 Is indirect ownership disclosed No
12 Is beneficial ownership disclosed No
13 Is information of voting agreements between shareholders disclosed No
14 Are internal audits required before releasing financial statements No
15 Is an external auditor required Yes
16 Is ownership and financial information publicly available to investors No
Disclosure index 1
Note. For the Credit Information Index the score of 0 indicates that virtually no information is publicly
registered or available. For items 8 and 9 the score 0 indicates that no registration bureaus exist;
For item 15 there is no formal requirement for an external audit but International Accounting Standards are
applied in a limited number of cases (mostly foreign/local joint ventures). The disclosure index ranges
from 0 to 10; with higher values indicating greater disclosure, a score of 1 indicates very limited disclosure.
Source: World Bank, Doing Business Survey
• Investment in the Maldives. There is separate legislation for investment in the
tourism industry.
• The Maldives Tourism Act 1999 – details the requirements for resort
development with including environmental aspects, etc.
• The Partnership Act of Maldives 1996 – clarifies the law on partnerships in the
Maldives.
• The Law of Contract Act 1991 – outlining the principle aspects of contract law as
applicable in the Maldives 4/91
• Consumer Protection Act 1996 – outlines principles and provisions to protect
consumer rights 1/96
• Sale of Goods Act 1991 – formed the basis for the Consumer Protection Act 1996
1/96
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