Corporate Insolvency Act could’ve benefited companies earlier – Registrar of Companies

The Registrar of Companies Mrs. Jemima Oware has expressed optimism that, the official liquidation of most companies could have been avoided if the Corporate Insolvency Act 1031 2020 had come earlier.

The Registrar of Companies made this revelation when she led Officials of the Registrar of Companies to respond to questions at Mr. Speaker’s Special Committee Sitting to inquire her outfit role in the closure of the defunct Blackshield Capital Limited.

In furtherance she said ‘’if this legislation had come on board earlier some of them might have been able to go through restructuring and administration without necessarily been liquidated ‘’ she emphasized.

The Act has been reviewed making it necessary to carry on with liquidation process thereby making investors to suffer adding that about fifty Fund Management Companies Licenses have been revoked by Securities and exchange Commission (SEC).

The insolvency provisions have placed companies in better position to have ample assets to settle claims for investors.

She added that the regulation has placed companies in a better option by just liquidating them when things are going bad.

Ghana over the years has had a gab in legislation to enact laws that will protect investors of their funds.

However, the Deputy Director of Legal Services of (SEC) Mrs. Debora Agyemfrah has explained that there was no laid down rules and procedures before payment was effected to some pensioners of Blackshield Capital Ltd.

The Deputy SEC Director pointed out that, though Blackshield Capital has not been liquidated due to an ongoing court case, some investors have been paid partially due to several appeals to Government to intervene.

She intimated that SEC is conducting an ongoing validation process where investors are validated before payment are made.

She however, admitted that, there are funding gap with regards to payment of claims.

The Chairman of the Special Committee Hon. Joe Ghartey MP Esikado Ketan questioned the rationale to pay some investors on grounds of ailments and leave others but Mrs. Debora explained that claims were submitted since November 2019 across ten regions and those that had been validated were paid.

The Committee has adjourned proceedings to Monday 4th March 2024.

Source:myrepubliconline