The Commercial Companies Law 18/2019 (“CCL 2019”) is the cornerstone of company law in Oman. The CCL 2019 came into force and effect in April 2019, but contemplated that certain aspects would be addressed and implemented pursuant to executive regulations issued by the Minister of the Ministry of Commerce, Industry and Investment Promotion (“MOCIIP”) and the Chairman of the Capital Market Authority (the “CMA”). The MOCIIP has now published the executive regulations that apply to all forms of Omani commercial companies other than public joint stock companies. These executive regulations were issued by the MOCIIP on 14 October 2021, published in the Official Gazette on 24 October 2021, and came into force on 25 October 2021.
The executive regulations pertaining to public joint stock companies were issued earlier this year by the Chairman of the CMA. These executive regulations were published in Official Gazette on 28 February 2021 and (subject to limited exceptions) came into force on 1 March 2021.
Separately, a new corporate governance code applicable to companies (other than public listed companies) in which the Government of Oman holds shares was issued by the Chairman of the CMA on 6 October 2021. This new corporate governance code was published in the Official Gazette on 17 October 2021 and came into force and effect on 18 October 2021. Companies affected by the new corporate governance code will need to amend their constitutional documents, to the extent required to ensure consistency, prior to 18 October 2022. Public listed companies continue instead to be regulated by the CMA’s code of corporate governance for public listed companies, which was originally issued in 2015 and was amended in 2016.
We will be preparing a summary highlighting key developments. If you have any questions in the interim, please contact Thamer Al Shahry or Alaa Al Hinai.