The Sixth Amendment to the Grant of Rights Regulation (the “Sixth Amendment”) was published on 12 February 2023 abolishing the requirement to obtain approval from the Ministry of Tourism for transfer of shares in companies which have leased island and lands for tourism purposes.
Abolishment of share transfer approvals and notice requirements
Sixth Amendment abolished the following requirements applicable for companies which have leased islands and lands for tourism purposes:
- Such companies are no longer required to obtain a written approval for the transfer of shares.
- Earlier, the Ministry of Economic Development will only record the transfer of shares upon receiving the no objection letter from the Ministry of Tourism.
- Further, the requirement to notify the Ministry of Tourism following the completion of the transfer of shares has also been abolished.
- Previously the companies were required to submit to the Ministry of Tourism confirmatory documents relating to the share transfer completion within 7 days from the date of recording the transfer of shares at the Ministry of Economic Development.
The above change eases the share transfer process for companies holding a tourism lease. This development was followed by the abolition of the share transfer fee earlier under the Fifth Amendment to the Grant of Rights Regulation.
The Sixth Amendment is effective from 12 February 2023.