By: L.N. Reklai
(Ngerulmud, Palau) Long awaited improvements on foreign investment act are finally on their way to President Remengesau Jr. for his action after Senate passed House bill 9-6-1, HD1,SD2,PD2, updating the foreign investment law framework during their 29th Special Session on November 10, 2016.
The bill which passed OEK and transmitted to President Remengesau Jr. on May 4th, 2016, was referred back on May 20, 2016 by the President with recommendations for further amendments. House approved changes except for the language that allows the Attorney General investigatory subpoena powers to investigate matters related to foreign investment act and passed the bill to Senate.
According to Senate, the referred bill was passed incorporating one or more amendments recommended by the President.
Some of the major changes include defining what a business enterprise is, defining a “front business” by listing possible factors which can be used to determine a “front business, defining ownership, allowing FIB Board more authority to regulate and investigate foreign investments, defining local ownership requirements, requiring $500,000 minimum investment for most businesses and $5,000,00 for hotels or short-term lodging, specify process for transfer of common stocks and includes notice to businesses suspected of being a “front” that business license may be revoked.
Senate in its 29th Special Session adopted PD2 version and the bill is now on its way to President Remengesau Jr. for his action. [/restrict]