05 Sep

Legal Update Morocco

Company Law

  • Starting 8 July 2019, the negative certificate necessary for the incorporation of a company becomes valid for 90 days instead of 360 days.
  • Law n° 20-19 amending and completing Law n° 17-95 relating to joint stock companies:
    • the number of non-executive-directors should be superior to the number of executive-directors in the board of directors
    • prior approval of the extraordinary general meeting of shareholders for disposals of more than 50% of the assets of the company within a period of 12 months
    • expansion of the liability of the directors, the CEO, the members of the supervisory board to errors committed or acts conducted which are not within the framework of the interest of the company, with the possibility for the court to condemn them to return to the company the profits generated by those acts, and to forbid them the management, administration, representation or control of any company for 12 months
    • obligation for publicly-traded companies to appoint one or more independent directors to their board of directors
    • granting a one-year period to publicly-traded companies to comply with the provisions of this law regarding independent directors.

Labor
Law

  • Decree n°2-19-424 raising the minimum legal wage by 10% as follows:
    • to MAD 14.13 starting 1st July 2019 5 and
    • to MAD 14.81 starting 1st July 2020

  • Decision No. 1356-19 establishing a new model employment contract for foreigners and providing that the provisions of the Moroccan Labor Code apply to foreign employees.

  • Decree No. 2-18-686 determining the conditions of registration of domestic workers with the Caisse Nationale de Sécurité Sociale.

Real
Estate / Commercial Lease Agreements

  • Decision 1803-19 establishing the list of industries allowed to be established in  the new free zone of Souss-Massa (city of Agadir)
  • Decree n°2-19-345  for the creation of the free zone of Tanger Tech.