Photo credit: PNG Chamber of Mines and Petroleum
Parliament recently (January 19 2022) passed the Mineral Resources Development Company (MRDC) Ltd Authorisation (Amendment) Bill 2021, after it was introduced by Prime Minister Hon. James Marape.
The Bill allows for governance procedures relating to appointment of directors on the MRDC board, and the election of directors for the MRDC company boards, to commence as mandated by its respective company constitution.
It rectifies the unintended consequences of the current provision in the Principal Act, in that it prevents the refreshing of representational mandate for directors on the MRDC board as well as project area representative directors on their respective MRDC Company boards, by subjecting it to the respective MRDC company constitution and the Companies Act 1997.
“The refreshing of representational mandate is critical for validity and community support for the MRDC Group,” PM Marape said when introducing the Bill.
“It instills a culture of accountability on the Board members, who are project area landowner representatives, and is also an important aspect of good governance and transparency,
“The Principal Act relating to the ownership of MRDC, as well as its roles and responsibilities as a corporate trustee manager, remain unaffected.
“It is only the administrative arrangements governing the appointment of directors on the MRDC board, and MRDC company boards, that are proposed to be changed in this bill to align with the Companies Act 1997.
“This Bill is necessary as it will allow for Governance procedures relating to the MRDC Board, and the election of directors for the MRDC Company Boards, to commence as mandated by its respective Company constitution.”
Reference: Department of Prime Minister and National Executive Council (19 January 2022). “Parliament Passes MRDC Bill.”
