New Corporations Law and Overrides Among Acts of Special Session



PALIKIR, POHNPEI – August 8, 2017. The 20th Congress of the Federated States of Micronesia convened its First Special Session and rewrote a new Corporations law for the Nation, overrode two presidential vetoes and addressed various issues pending before the body.

On July 6th the new congressional body convened in Palikir for its First Special Session and adjourned 10 days later with substantial measures.

The first was a presidential veto of Congressional Act (CA) 20-16 pertaining to assets and liabilities of the Open Access Entity. Passed during its May session, the Act required the Open Access Entity to provide connectivity free of charge to the FSM Telecom.  Following careful review the Committee on Transportation and Communications concluded that the president’s veto was based purely on policy decision and overrode the action.

Another presidential veto was of CA 20-14 which was an act to place a statutory limit on Members representation funds to be relative to the annual salary of the Nation’s President.  Following careful review of the veto message, the Committee on Ways and means concluded that the president’s veto was based purely on policy decision and overrode the action.

A substantial measure passed during the special session is the Corporate Act of 2017, CA 20-32. Initially enacted during the Trust Territory era in Micronesia, the new Corporation Act repealed chapter one of Title 36 of the FSM Code to align the provisions of the Code with contemporary practices of corporate laws by addressing deficiencies in the current law, protection and reassurance to investors, accord proper rights and privileges to shareholders, and promote safe and prudent corporate practices.

Also of note is CA 20-34, to appropriate a supplemental budget of $9,735,140.

The remaining Acts were for changes and amendments to funds previously appropriated for public projects and social programs across the Nation while others are to extend the lapse dates or change the use of funds previously appropriated, and they included;

CA 20-21; CA 20-22; CA 20-23; CA 20-24; CA 20-25; CA 20-26; CA 20-27; CA 20-28; CA 20-29; CA 20-30; CA 20-31, CA 20-33.

The First Special Session of the 20th Congress adjourned its 10-day session on July 15, 2017. According to Public Law 13-59, the next Regular Session of the Congress would be September 12 unless delayed by resolution or consensus of the majority and it would be for a 20-day period.


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