Barring persons charged with criminal offence from company directorship illegal – Supreme Court rules

The Supreme Court has issued a ruling declaring as unconstitutional a provision in the new Company's Act, which prohibits individuals charged with a criminal offence from becoming Directors of proposed companies about to be incorporated.

In a decision made on Wednesday, November 8, 2023, the apex court concluded that the initial segments of Sections 13 (2) (h)(i) and (ii) of the Company Act, 2019 (Act 992), which address the disqualification of persons charged with a criminal offence, were in conflict with Article 19(2)(c) of the 1992 Constitution.

Article 19(2)(c) safeguards the right of individuals accused of a crime to be presumed innocent until proven guilty.

According to a report by Graphic.com.gh, the apex court, in light of the fact that these two provisions in Act 992 violated Article 19(2)(c), has declared them null, void, and of no legal effect and removed them from the law.

Section 13 (2) (h) (i) of Act 992 stipulates that an application for the incorporation of a company must include a statutory declaration by each proposed director of the company, indicating that within the preceding five years, the proposed director has not been charged with or convicted of a criminal offence involving fraud or dishonesty.

The section also mentions that they should not have been charged with or convicted of a criminal offence related to the promotion, incorporation, or management of a company.

GA/SARA

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