The Financial Institution Commission (FIC) is seeking the help of the Senate to introduce necessary amendments to the Corporations Act.
In a letter to Sen. Secilil Elbedechel, Chairman of the Senate Committee on Banking, Insurance and Other Financial Matters that amendments are needed in the new Corporations Act.
At this time, the FIC is working steadily on the transition of the Corporate Registry to the new online system, which will make it easier for companies and non-profits to register with the Corporate Registrar, however, there are fine necessary amendments to ensure the corporate registry meets its “go live” date of December 1, 2023.
FIC said the necessary amendments are that any fees generated by the Corporate Registry be placed in a non-lapsing account.
It also asked the Senate to remove requirements that report be only filed between January 1, 2023, to April 1 , 2023, but instead filed on a rolling basis, based on the original registration date.
It also wanted amendments that the regulation be promulgated before Dec. 1, 2023
The amendments it requested will ensure that Corporate Registry will be self-sustaining.
FIC is designated as the Registrar of Corporations,
According to Executive Order No. 477., FIC has the “technical capacity and institutional knowledge to be designated as the Registrar Corporation that will administer the Corporate Registry promulgate regulations and adopt policies effectuating the purposes and procedures of the Act.”
Palau is modernizing and updating its Corporations’ laws of the Republic.
In 2021, Palau Public Law 10-11, or the Corporations Registry law was signed which will regulate corporations in Palau, both domestic and international as well as for-profit and not-for-profit corporations.