FSA Imposes Stricter Deadlines for General Assembly Notices: Implications for Oman’s Business Landscape
MUSCAT: The Financial Services Authority (FSA) has mandated that public joint-stock companies and investment funds must obtain approval for their general assembly invitation announcements at least seven working days prior to the commencement of the legally required publication period.
According to the Commercial Companies Law, the announcement must be published no less than 15 days before the scheduled meeting date. The FSA indicated that this additional lead time is essential for a thorough review of agenda items and for ensuring compliance with relevant laws and regulations before invitations are distributed to shareholders.
This directive follows the FSA’s observation that some companies and funds submitted invitations too close to the publication deadline, which left inadequate time for proper review.
In Circular No. (6/2025), the FSA outlined that this measure is part of ongoing efforts to enhance regulatory standards for convening general assemblies, especially during the annual meeting season for most public joint-stock companies and investment funds whose financial year concludes on December 31.
The Authority emphasized that all invitation submissions, including the agenda, must be made through approved channels, accompanied by all necessary documentation. Furthermore, all inquiries and correspondence regarding general assemblies must be conducted exclusively via the officially designated email address.
The FSA noted that the responsibility to adhere to these timelines rests with the companies, investment funds, and their legal advisors. Compliance is crucial for supporting sound legal procedures, protecting the rights of shareholders and unitholders, and reinforcing the essential role of general assemblies in corporate governance and critical decision-making.
The FSA’s mandate includes overseeing the organization of general assembly timelines and reviewing and approving invitation announcements to ensure that shareholders can exercise their legitimate rights.
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The FSA’s new directive emphasizes enhanced regulatory compliance, allowing ample time for review—a move that bolsters corporate governance and protects shareholder rights. This creates opportunities for businesses to strengthen their operational frameworks and investor confidence in the market. However, failure to comply with these regulations could pose risks to companies, necessitating that smart investors and entrepreneurs proactively review their processes and establish rigorous timelines to mitigate potential disruptions in governance.
