Office of Registrar of Companies initiates process to remove 8,500 companies

In a decisive move aimed at upholding regulatory compliance, the Office of the Registrar of Companies (ORC) has commenced proceedings to expunge approximately 8,531 non-compliant entities from its register.

Citing prolonged lapses in the submission of annual returns, alongside the requisite fees and financial statements spanning over two years, the ORC underscores the imperative nature of this course of action. The Companies Act, 2019 (Act 992) serves as the legal mandate necessitating such stringent measures, following exhaustive sensitization efforts and multiple public disclosures of delinquent firms via various media platforms and the official ORC website.

Despite persistent outreach endeavors urging stakeholders towards adherence, a significant cohort of companies has regrettably failed to meet the stipulated obligations, prompting the ORC’s decisive intervention.

While the removal process is slated for completion by May 2024, companies are afforded a fleeting opportunity to rectify their status. A fervent appeal is extended by the ORC for the prompt submission of overdue annual returns and audited financial statements before the stipulated deadline, thereby forestalling the imminent removal.

In light of the impending ramifications, companies expelled from the register face a consequential hiatus spanning 12 years, precluding them from engaging in commercial activities under their registered names. The prospect of restoration remains contingent upon a court decree, mandating a thorough review of just cause prior to reinstatement.

Furthermore, the ORC remains steadfast in cautioning against fraudulent schemes, unequivocally disavowing any association with purported Mobile Money Accounts soliciting payments under its aegis. Such admonitions serve as a pivotal safeguard against potential financial malfeasance amidst the stringent regulatory landscape.

In a concerted bid to reinforce compliance and mitigate future infractions, the ORC announces the implementation of an administrative penalty regime effective May 1, 2024. A levying of GH¢1,000 against defaulting entities underscores the resolve to foster a culture of accountability, consistent with the tenets of the Companies Act 2019.

These resolute measures underscore the ORC’s unwavering commitment to upholding regulatory sanctity and preserving the integrity of the corporate governance framework, thereby fortifying investor confidence and safeguarding the interests of stakeholders.

Source:norvanreports