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Legal & Regulatory Framework
The Maldives follows a common law system with the Maldivian Courts given discretion to apply the law in accordance with existing legislation by using common law precedents and, sources of Islamic law (Shari’a). Laws that govern commercial enterprises and undertakings are generally covered in the following sources of law:
The Constitution of Maldives
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The laws enacted by Parliament
The Regulations published under existing laws
Guidelines and rules issued by government ministries and institutions
The Maldives has a presidential system whereby the President is elected by popular vote for a period of five years and may sit for a maximum of two terms. The members of parliament, contains a total of 85 members elected by popular vote every five years.
Laws are passed by Parliament and thereafter assented by the President of the Republic of Maldives. After laws have taken effect, subsidiary legislation, or guidelines may be published, from time to time, by Government authorities and the respective line ministries charged with implementation of relevant laws.
The Maldives has an adversarial court system. In civil matters both the plaintiff and the defendant are allowed to present their case with supporting evidence and arguments to prove their claim. Once the court has ruled on the matter, the impugning party may further dispute it with an appellate court. The Maldives does not have separate Mercantile Courts for commercial disputes and therefore, most major commercial disputes will have their original jurisdiction in the Civil Court or as established in accordance with the Judicature Act. However, a separate administrative tribunal – the Tax Appeal Tribunal – was created in 2010 as a first instance tribunal for all tax related disputes. Furthermore, the Arbitration Act of Maldives recognizes Arbitration as a form of alternate dispute resolution
Laws are passed by Parliament and thereafter assented by the President of the Republic of Maldives.