B&FT: Company’s Act must be adhered to

Ghana’s Company’s Act requires that all registered business re-register and file their returns with the Registrar General’s Department (RGD) to attest that they are in continuous operation, or still in existence.

That notwithstanding, more than 67,000 businesses in the country have flouted this provision which has over-bloated the business register, and gives the false impression that they are active and doing serious business in the country.

Thankfully, this will remain a thing of the past as the Registrar General, Jemima Oware, is determined to right the wrongs of yesteryear and ensure businesses adhere to the company’s Act. Consequently, Mrs. Oware is kick-starting the provisions in the Act and will put out notices asking these businesses to come and re-register within two months.

Failure to comply with the grace period granted by the RGD, it will mean the affected businesses will be taken of the list of the registered companies until the next 12 years; which will mean they cannot do any business in Ghana during the period.

Already, a number of businesses have expressed misgivings about the timelines since they want it extended to enable most, if not all businesses, to fully comply with the Company’s Act. To be truthful, this action should have been for a long time ago if not for negligence and a failure to uphold the provisions of the act.

Mrs. Oware further asserted that, out of the over one million registered businesses in the Department’s database, barely 10 percent of the registered businesses had filed their returns. To this end, the Registrar General’s Department plans to establish the Office of the Registrar of Companies (ORC).

The establishment of the ORC is an accordance with provisions made by the new Companies Act, 2019 (Act 992) and would be autonomous; a separate entity from the Registrar-General’s Department.