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HomeNewsRegistrar of Companies to strike out 508,000 companies for failing to comply with...

Registrar of Companies to strike out 508,000 companies for failing to comply with notices

The Office of the Registrar of Companies (ORC) is required to remove fifty-eight thousand (508,000) public and private business organisations from its registry by the end of June 2024.

This is the result of the businesses’ inability to submit their yearly returns on time in order to maintain good status.

Over the previous two years, alerts and reminders have been sent to the companies through a variety of publications and sensitization initiatives.

At first, the Office of the Registrar of Companies (ORC) granted the companies until the end of 2023. However, the ORC decided to extend the deadline in order to give the defaulting enterprises more time to prepare and conduct extensive public education in order to comply with the mandate.

This was stated in a press release that the Registrar of Companies, Jemima Mamaa Oware, signed and released on Monday, June 3, 2024, in Accra.

A company whose name is struck off the register cannot and is not permitted to conduct business under the company name for twelve years, according to Section 289(5) of the Companies Act 2019 (Act 992).

It further stated that, in line with Section 59(A) of the Registration of Business Names 1962 (Act 151), business names (sole proprietorships) forfeit their right to their names when they become publicly domain due to default.

A court must find sufficient cause and issue an order to the Registrar of Companies directing the restoration of the name to the register in accordance with Section 289 (7) of the Companies Act 992 before the Registrar of Companies can restore a company that has been struck off the register, the release further cautioned.

After being featured in national dailies and on our official website, “over 8,000 companies limited by shares (both private and public) have been served notices and reminders through vigorous sensitization and multiple publications for the past two years,” the report disclosed. “They were recently notified again in a release dated February 12, 2024, urging them to file their annual returns to be in good standing.”

The Office would conclude the validation procedure for the entities in default by June 30, 2024, thus it urged firms and enterprises in default to file their annual returns and renewals as instructed by the Registrar of firms.

According to the press release, annual return filing is essential to upholding compliance and openness in the corporate sector.

It guarantees that enterprises and companies uphold their good standing with the office and complete their legal obligations.

Furthermore, the release stated that neglecting to fulfil these responsibilities would compromise not only the organization’s legal standing but also the public’s trust and confidence. As a result, it was requested that these organisations act right away to ensure their good standing in order to avoid paying fines and possibly facing legal ramifications.

“To preserve the integrity of the business environment and promote trust and confidence among investors, consumers, and the public, the ORC encourages compliance from all stakeholders,” the statement read.

Companies in default were asked to examine the names of affected companies that are set to be struck off by visiting the ORC’s website.

The ORC is a government agency in Ghana that was founded by the Companies Act, 2019 (Act 992) to facilitate the orderly conduct of business and provide regulatory, insolvency, and business registration services. In the process, the ORC hopes to improve the business climate in Ghana.