Noonu Natrally > Roadmaps > plans > Enhancing Local Governance (LDP-1)

Establish and strengthen Noonu Atoll Local Authority Company

Recognizing the potential of a strong Noonu Atoll Company to drive economic development and improve service delivery in atoll is crucial. This initiative will involve ensuring proper registration and a solid legal framework. It will also define the company's share capital structure and establish sound financial management practices. The council will play a guiding role by directing the company's corporate governance policies. To foster collaboration, council will sign Memorandums of Understanding (MOUs) with key stakeholders. Additionally, council will provide the company with necessary office space and infrastructure. To ensure efficient operations, it will introduce a direct procurement policy and strong corporate governance practices. Finally, close collaboration between council staff and the LAC will be crucial for its success.
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Chronology

Leading Team

The Corporate Affairs Team is centralized team responsible for the administrative and operational functions of both the council secretariat and the company. This team serves as the backbone of both organization, handling tasks such as general administration, human resources, legal matters, procurement, facilities management, and overall coordination of internal processes. By integrating these functions, the Corporate Affairs Team aims to streamline operations, enhance efficiency, and provide comprehensive support to the both organization's strategic goals.

Corporate Affairs Team

8. Decent Work and Economic Growth

1.6 Atoll Economic Development

1

Registration and Legal Framework

To establish a Local Authority Company under the Decentralization Act, it is essential to consult with legal counsel to ensure compliance with all relevant regulations and procedures. The necessary documents, including the Memorandum of Association and Articles of Association, should be prepared to outline the company's objectives, share structure, governance, and operations. Qualified individuals with relevant expertise and business acumen should be appointed as directors and shareholders. Finally, the completed registration application, along with the required fees, must be submitted to the Ministry of Economic Development & Trade.
2

Share Capital and Financial Management

To establish the Local Authority Company (LAC), it is essential to determine the initial share capital by analyzing potential business ventures and financial needs. The council, as the sole shareholder, should issue shares with transparent record-keeping. Clear financial management policies, including budgeting, accounting, reporting, and internal controls, must be established. Additionally, exploring funding options through grants, loans, or partnerships can support the LAC's operations and expansion.
3

Setting Up the Local Authority Company Office

To establish a functional office for the Local Authority Company (LAC), a suitable location with reliable internet access and adequate space must be secured. The office should be equipped with necessary furniture, technology, and equipment to facilitate efficient operations and service delivery. A secure IT infrastructure, including financial management systems, project management tools, and communication platforms, should be implemented. Establishing clear communication channels, such as phone lines, email addresses, and online platforms, will ensure effective interaction with stakeholders and residents.
4

Establishing a Direct Procurement Policy

To streamline procurement processes, Atoll Council should draft a clear direct procurement policy outlining criteria and procedures for acquiring goods and services. This policy must be approved by the council. Staff should be trained on the policy to ensure its effective implementation. Additionally, monitoring and evaluation mechanisms should be established to track compliance and assess the policy's effectiveness in achieving desired outcomes.
5

Enforcing Corporate Governance

To ensure the effectiveness and accountability of Local Authority Company, it is crucial to enforce strict adherence to corporate governance policies. This involves establishing clear guidelines for board and management responsibilities, financial reporting, conflict of interest management, and ethical conduct. Regular monitoring and evaluation of compliance with these policies are essential to identify and address any deviations. Implementing a robust internal audit function can also contribute to maintaining high standards of corporate governance. By prioritizing corporate governance, LAC can enhance their credibility, attract investment, and ultimately better serve the communities.
6

Collaborative Resource Sharing MOU

To foster collaboration and optimize resource utilization, a Memorandum of Understanding (MOU) will be signed between the Local Authority Company (LAC) and the Atoll Council. This MOU will outline the terms and conditions for sharing resources, such as equipment, facilities, expertise, and financial support. By formalizing this collaborative arrangement, both parties will leverage each other's strengths, reduce costs, and enhance the overall effectiveness of their operations in serving the atoll community.

Points of Discussion

31.2 Startup Capital Injection for Noonu Atoll Company

Proposal
Proposal outlines a strategic investment in the Noonu Atoll Company through the issuance of startup capital. By utilizing existing assets of the Noonu Atoll Local Authority Company Limited, this initiative aims to establish and strengthening governing structures of the company.
It is proposed that Atoll Council transfers one million Rufiyaa (MVR 1,000,000.00) to the Noonu Atoll Company as startup capital. This capital injection will be realized by issuing shares to the Noonu Atoll Council. The specific number of shares will be determined based on the share value as outlined in Company’s articles of association. Providing startup capital will empower the company to undertake administrative setups, initial ventures, create jobs, and contribute to the overall growth of the company itself. Leveraging company’s share capital efficiently allocates existing resources and maximizes their impact. The investment is a strategic move to foster entrepreneurship and innovation within the Noonu Atoll community.
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This task is in the Council Decision list - General plan.
Decision
RESOLVED, that the Secretary-General be and is hereby directed to initiate the process of issuing specified shares of the Noonu Atoll Local Authority Company Limited with a total value of one million Rufiyaa (MVR 1,000,000.00) to the Noonu Atoll Company as startup capital. FURTHER RESOLVED, that all necessary legal and financial procedures be undertaken to ensure transparency and accountability in the issuance of shares and the transfer of funds. FURTHER RESOLVED, that this capital injection is expected to enhance the administrative capabilities of the Noonu Atoll Company, facilitate its expansion, and support the recruitment of senior management. FURTHER RESOLVED, that the Noonu Atoll Company shall utilize the funds to initiate development projects within Noonu Atoll and explore opportunities to generate additional revenue through dividends and share appreciation.
Introduced by

Mohamed Adnan

maafaru Island Council President

In Favour
0
Opposed
0
More details

31.1 Introduction of Evaluation Process and Criteria for Investment Proposals and Capital Injection of Council-Owned Businesses

Proposal
This rule is established pursuant to the authority granted by Act No. 2010/7, the Decentralization of Administrative Areas Act, and Regulation No.13-2023, which outlines the procedures for capital expenditure by councils on local authority companies and private enterprises. Specifically, this rule is formulated under Article (n) of the aforementioned regulation. The primary objective of this rule is to introduce a comprehensive evaluation process and criteria for assessing investment proposals and subsequent capital injections into council-owned businesses. By establishing clear guidelines, this rule aims to ensure that investment decisions are made systematically, transparently, and in the best interest of the council and its constituents.
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Decision
RESOLVED, that the Atoll Council hereby adopts the process and criteria for the evaluation of investment proposals and the injection of capital investments into council-owned businesses. FURTHER RESOLVED, that this resolution is enacted pursuant to the authority granted by Act No. 2010/7, the Decentralization of Administrative Areas Act, and Regulation No. 13-2023, Rules on the Procedure for Capital Expenditure by Councils on Local Authority Companies and Such Ventures. FURTHER RESOLVED, that the implementation of this resolution shall be in accordance with the provisions of Article (noonu) of Regulation No. 13-2023. FURTHER RESOLVED, that the Secretary-General, in conjunction with the heads of the Administration and Finance Units, is hereby directed to commence the implementation of the Rules of Procedure for operating and managing Local Authority Companies, Council Holding Companies, and overseeing capital investment and procurement processes for these companies. FURTHER RESOLVED, that the aforementioned Rules of Procedure shall be subject to Council Secretariat and be incorporated into the Standard Operating Procedures (SOPs) to be followed by the Secretariat in executing related tasks.
Introduced by

Mohamed Basheer

President of Noonu Atoll Council | 2021-Now

In Favour
0
Opposed
0
More details

32.2 Amendment for Evaluation Process and Criteria for Investment Proposals and Capital Injection of Council-Owned Businesses

Proposal
To foster economic growth and development within the atoll, the Noonu Atoll Council will establish comprehensive policies and guidelines for investing in council-owned businesses. These policies will outline clear criteria for evaluating investment proposals submitted by council-owned companies. Furthermore, the council will develop a robust framework for council procurement processes involving council-owned companies. This framework will include transparent and competitive procedures, ensuring that all proposals are assessed fairly and consistently based on predefined evaluation criteria. By implementing these measures, the council aims to optimize the performance and contribution of council-owned businesses to the overall development of the Noonu Atoll while maintaining transparency and accountability in all financial transactions.
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This task is in the Council Decision list - General plan.
Decision
Resolved, that the Noonu Atoll Council hereby adopts this policy amendment to govern investments in council-owned businesses and the evaluation of proposals for ventures aligned with the Atoll Development Plan. The amendment establishes clear criteria for determining eligible investments, evaluating proposals, and managing associated risks in relation to the atoll’s development plan. Further Resolved, that council-owned businesses seeking to participate in council procurement or undertake projects aligned with the Noonu Atoll Development Plan must submit formal proposals directly to the council for evaluation in accordance with the established criteria. Further Resolved, that to safeguard the council’s interests, any collaboration between council-owned businesses and third parties requires prior council approval and that sub-contracting of entire council-funded projects to third parties is contingent upon explicit council authorization. Further Resolved, that this amendment is enacted pursuant to the authority granted by Act No. 2010/7, the Decentralization of Administrative Areas Act, and Regulation No. 13-2023, Rules on the Procedure for Capital Expenditure by Councils on Local Authority Companies and Private Enterprises. Further Resolved, that the implementation of this amendment shall be in accordance with the provisions of Article (Noonu) of Regulation No. 13-2023.
Introduced by

Mohamed Basheer

President of Noonu Atoll Council | 2021-Now

In Favour
8
Opposed
1
More details

32.1 Strengthening Corporate Governance for the Noonu Atoll Company

Proposal
Noonu Atoll Company is a crucial entity in the development of the Noonu Atoll, fully owned by the Noonu Atoll Council. To ensure its effective and accountable operation, it is essential to align company's corporate governance practices with the highest standards set forth by the Privatization and Corporatization Board of Maldives (PCB). A comprehensive assessment of current SOE's governance practices against the PCB guidelines is necessary to identify areas for improvement. This evaluation will provide a clear roadmap for implementing corporate governance practices. Key areas of focus include optimizing board responsibilities, refining management structure, strengthening internal controls, enhancing transparency, and integrating sustainability considerations into decision-making. By adhering to best corporate governance practices, company can significantly enhance its efficiency, effectiveness, and transparency. This will foster trust among stakeholders, mitigate risks, and improve the company's attractiveness to potential investors. Ultimately, a well-governed company will contribute to the sustainable growth and development of the Noonu Atoll.
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This task is in the Council Decision list - General plan.
Decision
Recognizing the critical role of the Noonu Atoll Company in the atoll’s development, hereby resolves to align company’s operations with the highest standards of corporate governance as outlined by the Privatization and Corporatization Board (PCB). This decision mandates a comprehensive assessment of current SOEs governance practices against PCB guidelines to identify and implement necessary improvements. The assessment will focus on optimizing board structure, refining management, strengthening internal controls, enhancing transparency, and integrating sustainability. Furthermore, the Council directs the Planning Unit to instruct the Company's Board to formulate and approve the company’s Articles in accordance with PCB standards for SOEs. The Company Board is hereby mandated to conduct all company operations in compliance with PCB standards and the Corporate Governance Code. This decision is aimed at enhancing company’s efficiency, accountability, and transparency, thereby fostering trust, mitigating risks, and positioning the company for sustainable growth.
Introduced by

Mohamed Adnan

maafaru Island Council President

In Favour
9
Opposed
0
More details

35.2. Amendment to the policy framework for delegating the executive authority over the Atoll Development Plan to Noonu Atoll Company and providing capital investment funds

Proposal
Atoll Development Plans are comprehensive strategies designed to foster economic growth, social progress, and environmental sustainability of the Atoll. These plans often encompass initiatives in infrastructure, tourism, fisheries, and other vital sectors. Noonu Atoll Company is an entity, council-owned tasked with execution of development endeavors of Noonu Atoll. Its responsibilities include implementing the Atoll Development Plan, attracting investments, and managing local resources.
The proposed policy amendment seeks to elevate Noonu Atoll Company’s role in the atoll’s development. Primarily, it aims to grant the company executive authority over the Atoll Development Plan. This entails empowering the company to make crucial decisions regarding project implementation, resource allocation, and external representation. Secondly, the amendment involves allocating additional financial resources to the company to fund development projects. By granting more authority and funds to the local company, the council aims to expedite decision-making and project implementation.
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Decision
The Secretary-General, department heads, and the company's board must collaborate on planning and executing the Atoll Development Plan. The agency responsible for implementation can be changed by the President of the Atoll Council, who must inform both the Council Office and the company of any alterations. The Planning Unit will primarily oversee the plan's execution. The Planning Unit Head is tasked with initiating the monitoring process, establishing necessary digital systems within the council office and company, and providing staff training. The company's board is accountable for all planning and execution of tasks assigned to the Noon Atoll Local Authority Company under the Noon Atoll Development Plan. A formal agreement outlining this responsibility must be signed with the Council. The Secretary-General must align the Council Office's future operations with the first amendment to the Rules on Capital Investment, Loans, and Sponsorships for Local Authority Companies and Council Holding Companies.
Introduced by

Mohamed Basheer

President of Noonu Atoll Council | 2021-Now

In Favour
8
Opposed
2
More details

35.1. Providing capital to Noonu Atoll Company

Proposal
This proposal outlines the necessary steps to provide financial resources to Noonu Atoll Local Authority Company Limited. By issuing paid-up capital, the company will receive a substantial infusion of funds to support its operations, projects, and overall financial stability. This capital injection is crucial for the company to effectively execute its mandate of driving development in Noonu Atoll and delivering essential services to its residents.
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Decision
The Secretary-General and the Finance Unit are instructed to allocate and disburse a sum of two million Maldivian Rufiyaa (MVR 2,000,000.00) from available funds to purchase shares in Noonu Atoll Local Authority Company Limited. This financial contribution will be made in accordance with the company's Articles of Association, which outline the total authorized capital. By investing this amount, the organization will acquire ownership in the company and support its overall operations and growth.
Introduced by

Mohamed Adnan

maafaru Island Council President

In Favour
8
Opposed
2
More details

Progress

Stay informed about our efforts on Establish and strengthen Noonu Atoll Local Authority Company through these progress reports. These updates provide detailed information on the actions and engagements related to developing and implementing development plans, projects and programs.

View All Progress

2024

Engagements

30 Nov 2023

31st Noonu Atoll Council Sitting

31 Dec 2023

32nd Noonu Atoll Council Sitting

08 May 2024

35th Noonu Atoll Council Sitting