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Legal Practitioner Ace Ankomah has advised persons seeking to establish their own companies, especially banks, not to run it as they would a football club noting that the management of the two cannot be compared.
According to him, once you choose to own a company, the rules change because money used in setting up the company doesn’t become a loan to the company until it is so described.
This he noted, disallows people who set up companies from retrieving money used for its establishment in the guise of recovering any expenditure incurred in the process.
“In fact, ladies and gentlemen, investing in a company or forming your own company is not like being the only owner of the local football” he stressed.
He also said most companies have been run as if they provided their own football and at any time can take it out.
Speaking on Newsfile hosted by Samson Lardy Anyenini, Ace Ankomah stressed that shareholders were only entitled to their dividends owing to the fact that the law states dividends can only be paid from the income surplus of the company.
“So, the company becomes separate, it is not you. The company’s car, is the company’s car and the company’s property, is the company’s property and the company’s money is the company’s money…it is not yours” he emphasised.
His statement comes on the back of the collapse of some banks in the country by the central bank.
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