GhanaWeb TV



Craftily hiding behind Limited Liability Partnership Company to dupe banks

Bank 78.png File photo of bank

Thu, 18 Feb 2021 Source: Rockson Adofo

No wonder that where the whiteman builds, the blackman is only good at destroying or dismantling.

Going straight to the point, citing an advantage within the establishment of a Limited Liability Company, one could see some blackmen unduly always availing themselves of that singular benefit to the detriment of the nation and the taxpayers.

In a Limited Liability Partnership Company, the shareholders or directors only stand to lose their monies and properties only invested in the company when it does go insolvent or bankrupt. They don't lose any of their personal wealth not being part of the company gone bust.

With this in mind, some Ghanaian entrepreneur may decide to go for heavy bank loans to invest in his company. This person may have created about five or more different Limited Liability Companies.

He initiates the loan in the name of only one of his such many companies. Each company is different from the others. He takes the loans without presenting any collateral.

In many known cases, the company in whose name the millions of US dollars or Ghana new Cedis loans are taken goes bankrupt.

However, among the polices of LLP Companies is that the shareholders or directors stand to lose only the money they have invested in the company. The assets of the company but not the private properties of the shareholders can be sold to defray any debts the company may owe.

I don't want to go into the details or nitty-gritty of the governing policies as to a LLP Company going bankrupt.

What if a person having many companies take a loan in the name of one but secretly ends up channelling part of the money into his other businesses? How do the banks claim back their money so lent if the assets of the collapsed company among his many other companies cannot pay back the debt he owes?

Could a business tycoon in Ghana not be suspected of doing exactly that to make his riches? Are the board members of certain banks and politicians not collusively helping such an individual to dupe the banks and the taxpayers by their failure to ask for collateral security prior to lending such millions of dollars or Cedis to the businessman?

Ghanaians are jokers. Our laws must be amended to reflect our nature and attitudes or else, we will forever wobble in poverty or stagnate as subhuman only for the neo-colonialist Chinese to come to enslave us in our own land.

Make laws to arrest the loopholes in how LLP Company policies are applied in Ghana if found to be abused by greedy and crafty businessmen.

Mr Businessman, don't see yourself as too intelligent when you hide behind LLP to dupe Ghana banks only for the poor taxpayers to pay off your debts for you. Shame though.

Columnist: Rockson Adofo