MPs admit to erring in passing Companies Act

Members of Parliament have admitted to making a mistake in the passage of the Companies Act 2019, particularly regarding a provision stating that a person facing charges cannot serve as a company director.

This section, according to a court order, was in contradiction by the Supreme Court, deeming it inconsistent with the 1992 Constitution.

In a citinewsroom.com report, it has asked the office of the Attorney General to bring it to parliament for the necessary corrections to be effected.

The constitutional matter leading to this decision arose from a case filed by lawyer Derick Adu-Gyamfi, who argued that certain subsections of the Act were unconstitutional and violated principles such as fair hearing.

Member of Parliament (MP) for Tamale South, Haruna Iddrisu, openly acknowledged the legislative error related to the disqualified director provision and called upon the Attorney General to promptly present an amendment to Parliament for review and approval.

“In the company’s code we passed, we said that if a person is charged with an offence, that person does not qualify to be a director. We erred and we should eat our humble pie, and by this, invite the learned Attorney General to come urgently to this House with proposed amendments to the company’s code so that we right those wrong,” Haruna Iddrisu stated.

MP for Dome-Kwabenya, Sarah Adwoa Safo, who seconded the call, shared in the opinion.

“I don’t want to over-buttress the point that indeed the Supreme Court has done a great job, and the Attorney General, I am sure, has heard the ruling of the Supreme Court and will do the needful and bring a proposed bill only to amend that portion of the company’s code,” she added.

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