The Office of the Registrar of Companies (ORC), has commenced legal processes to remove 8,531 companies limited by shares in default for more than two years from the companies register by the end of May this year.
Consequently, the ORC would commence the implementation of a one off administrative penalty of GH¢1,000.00 against any company in default effective May 1, 2024, which would be strictly implemented in accordance with the Companies Act, 2019 (Act 992).
The decision according to the office, has become necessary to purge the register of dormant companies and companies in default for failure to file their annual returns and update their records as directed by the Registrar of Companies in accordance with Section 126 of the Companies Act 2019 (Act 992).
This was announced in a statement issued and signed by the Registrar of Companies, Ghana, Mrs Jemima Mamaa Oware.
According to the statement, 8,531 companies limited by shares both private and public have failed to comply with the registrar’s directive to file their annual returns each year; hence, they have been found to be in default.
“These companies can, however, still file their annual returns together with their audited financial statements with the office by the end of May 2024 before the process of striking off companies is completed,” the statement said.
“It is worth noting that the ORC has taken this decision after two years of rigorous sensitisation and multiple publications of these companies in default in the media and our official website as the Companies Act, 2019 (Act 992) requires of the Registrar of Companies,” the ORC said.
It said despite all the efforts by the ORC to encourage stakeholders to file their returns, some companies have still not complied with this directive.
The statement said, per section 289 (5) (Act 992), a company that has its name struck off from the register was not permitted to conduct business under the company name for 12 years.
“A company struck off the Register can only be restored by the Registrar of Companies after a court finds sufficient cause and therefore issues an order to the Registrar of Companies directing the restoration of the delisted name to the Register as per section 289 (7) of the Companies Act 992,” the ORC indicated.
The statement advised company officials to visit the ORC’s website and also check in the national dailies, to find published names of affected companies to be struck off.
