In a sale of business, shares, assets or property, representations and warranties play a significant part. A good portion of the sale and purchase agreement is spent on pages and pages of representations and warranties. At the heart of it, they are all statements of fact. There are a few reasons for dealing with representations …
On 25 November 2019 the Ministry of Tourism introduced a Policy requirement that monthly Progress Reports must be submitted by all islands under development – that is all islands which are not in operation. This requirement for Progress Reports applies to all lessees equally whether the requirement is already spelled out in the Island Lease …
Mergers and Acquisitions or M&As may sound like a pretty sophisticated term for the Maldivian marketplace as the term is not so often used in the Maldivian business community or investor market. However, in actual fact, we continue to engage in various business strategies that qualify well within the term, just under a different set …
You may call it a Letter of Intent (the “LOI”), Expression of Intent or even a Memorandum of Understanding, either way it is often the first significant step of negotiations between parties to a potential sale. It also presupposes that some basic and preliminary level of communication has occurred between parties to reach to this …
Due Diligence entails a process of inspection, examination and verification. It is a presale activity. It is often done by a buyer who is interested in completing a M&A type acquisition of a business or property. It is put into action once a letter of intent or expression of interest is signed between a potential …
We often hear of sale and transfer of leasehold rights of resorts in the Maldives. We also hear of transfer of shares of companies holding resort leases. In our experience, we can easily divide the buyers into two distinct categories. Strategic Buyers and Financial Buyers. A strategic buyer is in broader terms a competitor. They …
Here we provide an explanation of the ‘resident director’ requirement for a public company incorporated in the Maldives and how this requirement can be satisfied. Resident director requirement The Companies Act (Law No. 10/96) requires that a private company incorporated in the Maldives must have at least two directors, at least one of whom must …
Maldives Government lease islands and lagoons for tourist resort development. Sometimes islands are too small, and new land may need to be created. And where lagoons are leased the entire island may have to be created. This is where a site suitability study becomes important. What is it? A site suitability study determines the environmental …
7 factors to consider Investment protection is of the upmost importance for a person looking to make an investment, whether domestically or abroad. Here we provide a brief overview of 7 factors that may enhance the protection of a foreign investment into the Maldives. Each of these, along with other avenues for investment protection available …
