One month passes as government fails to appoint directors to MTDC board

Government’s primary tourism development company, the Maldives Tourism Development Corporation Plc (MTDC) has stated that over a month has passed since the deadline for the government to appoint directors to the company's board.

Four directors have to be appointed by the government to the board of the public limited company, including a managing director. A senior official from the company said that they are finding it immensely difficult to make the necessary day-to-day decisions, as they still lack a man at the helm.

“The company regulation states that the Managing Director will make the day-to-day decisions. A lot has been pending within the past month, we still don’t have a Managing Director. We have brought this to the attention of the necessary people at the government,” the official said.

The official said that the company’s board currently consist of the five directors elected by the shareholders and that this number does not hold the quorum required to conduct their meetings.

“We asked that the board members to be appointed, just to the minimum number necessary to gain the quorum. But one month has passed and nothing has happened. We have matters to be decided that involve millions of dollars,” the official said.

The State Business Privatization Act requires the Privatization and Co-privatization Board to appoint directors to public limited companies.

The President of the Privatization Board, Mohamed Amjad said that they have decided to appoint the same three members who had held seats during the previous term and that they have asked MTDC to provide the members' required information.

The company’s regulation states that the government shall appoint four directors to the company’s board, and that their terms shall be from one Annual General Meeting to the next AGM the following year. The company is temporarily being run by its Director Ahmed Niyaz, stepping in for the vacancies of Chairman of the Board and Managing Director.