This Companies  Act was  approved by the 102nd session of the Lhengyal Shungtshog held  on October  9, 1989  at Tashichho  Dzong. Thimphu  in suppression of  the existing  Companies Act,  Corporate Charters  and regulations. 

This Companies  Act, 1989  comes into  effect from  the  29th  day  of October, 1989. 

Ministry of Trade & Industry   

PART - I 
PRELIMINARY 

Short Title, Commencement and Extent 

1. i.  This act  may be  called the  Companies Act  of the  Kingdom of Bhutan, 1989. 

ii. It shall come into force with effect from 29 October, 1989. 

iii. It shall extend to the whole of the Kingdom of Bhutan. 

Definitions 

2. In this Act, unless the context otherwise requires: 

i. "Administrative  Ministry" means the Ministry to which a company is attached by the nature of its operations and the programme to which it pertains. 

ii. "alter" and "alteration" shall include the making of additions and omissions. 

iii. "Articles" means the Articles of Incorporation of a company. 

iv. "Board  of Directors"  or "Board"  in relation  to a company means Directors collectively  acting  as  the  Board  of  Directors  of  the company. 

v. "books  and papers"  means and  includes accounts, deeds, vouchers, writings and documents. 

vi. "capital"  means amounts  contributed by  shareholders towards the capital of a company and includes capital credited as paid up. 

vii. "Chairman" means the Chairman of the Board. 

viii. "company" means any company limited by shares incorporated under this Act as a company. 

ix. "debenture"  means a  document acknowledging  debts to persons and includes debenture  stock, bonds  or any  other security  of a company having fixed  interest rate  and  specified  maturity  period  whether secured or unsecured. 

x. "Department"  means the  Department of  Trade and  Industry of  the Government (entrusted  with the  administration of  this Act  or  such other authority as may be prescribed from time to time.) 

xi. "Director"  means a director of a company appointed as a member of the Board under this Act. 

xii. "document"  means and  includes summons,  notices,  requisitions, orders or  other legal processes and registers whether issued, sent or kept in pursuance of this or any other Act or otherwise. 

xiii. "Foreign  Company" means a body corporate not incorporated under the laws of Bhutan. 

xiv. "Government" means the Royal Government of Bhutan. 

xv. "Government Company" means a company where the full capitalization has been provided by the Government. 

xvi. "Holding  Company" means  a company  which holds more than 50 per cent of  shares  of another company namely its subsidiary and the term 'subsidiary" shall be construed accordingly. 

xvii. "Joint  Sector Company"  means  a  company  where  the  majority capitalization has been provided by the Government. 

xviii. "Managing Director" means the managing head of a company or the chief executive  officer  who  exercises  overall  management  of  the company. 

xix. "Persons"  include an  individual, a company, a Government agency and any body of persons recognised as a separate legal entity. 

xx. "Private  Company" means  a company  where the  majority  or  full capitalization has been provided by the private sector. 

xxi. "prospectus" means any  document issued  to the  public inviting offers from the public for subscription or purchase of any share in or debenture of a company. 

xxii. "shares" means shares in the share capital of a company. 

xxiii. "shareholder"  means a  person who  holds shares in the company and whose name is listed in the Register of Shareholders. 

xxiv. "in  writing" means  and includes  printing, typing,  writing by hand and  other modes  of representing or reproducing words in visible 
form. 

xxv. "family"  shall be  construed to have the same meaning as defined in the law of the land. 

xxvi. Words  importing masculine  gender  also  include  the  feminine gender. 

xxvii. Words  importing the  singular number  also include  the plural number and vice versa.