Government can now sell its shares in joint-ventures formed for tourism development under new regulation.
The new regulation published by the Finance Ministry states that the government’s shares in companies formed as joint-venture to develop resorts or other tourism projects can now be sold under the supervision of Privatization and Corporatization Board.
As part of the new regulation, the Finance Ministry can sell government shares by seeking the approval of the President himself and the submission of crucial details; including the project area size and the total share value (USD 5 per share) to the Privatization and Corporation Board for evaluation.
The said company will be considered as a joint-venture as long as it was formed before the amendment to the Article 10 of the Tourism Laws and Regulations, and the company’s Articles of Association should state that it is a joint-venture formed for tourism development.
The shares will be sold as per the agreement made between the government and rest of the joint-venture’s shareholders. Moreover, the payment for shares can be paid in installments of up to 18 months.
The company should submit all the necessary documents of new ownership and legal proceedings 15 days (excluding public holidays) after the final payment for the shares are completed.
The new amendment to the Article 10 of Tourism Laws and Regulations grants the government the power to sell its shares in joint-ventures formed for tourism development in the country.
Government plans to sell its minority share in such joint-ventures to private foreign parties.
Shangri-La Island Resort in Addu City is a joint venture formed between Shangri-La and the government to develop tourism in southern regions of the Maldives.