Members of Parliament in Ghana have openly admitted to a legislative oversight in the passage of the Companies Act 2019, acknowledging a constitutional inconsistency flagged by the Supreme Court.
The Companies Act, as initially passed, included a provision stating that individuals charged with an offence were ineligible to serve as directors of a company.
However, the Supreme Court deemed this particular section incompatible with the 1992 Constitution and subsequently struck it down.
The legal challenge leading to this decision stemmed from a constitutional matter brought before the court by lawyer Derick Adu-Gyamfi. Adu-Gyamfi argued that certain subsections of the Companies Act were unconstitutional and infringed upon fundamental principles, including the right to a fair hearing.
In response to the Supreme Court’s ruling, the Member of Parliament for Tamale South, Haruna Iddrisu, openly acknowledged the legislative error and urged the Attorney General to promptly present proposed amendments to the Parliament for consideration.
“In the company’s code we passed, we said that if a person is charged with an offence, that person does not qualify to be a director. We erred and we should eat our humble pie, and by this, invite the learned Attorney General to come urgently to this House with proposed amendments to the company’s code so that we right those wrong,” stated Iddrisu.
Supporting the call for swift action, MP for Dome-Kwabenya, Sarah Adwoa Safo, emphasized the importance of addressing the constitutional inconsistency highlighted by the Supreme Court.
“I don’t want to over-buttress the point that indeed the Supreme Court has done a great job, and the Attorney General, I am sure, has heard the ruling of the Supreme Court and will do the needful and bring a proposed bill only to amend that portion of the company’s code,” added Safo.
The admission of the oversight by Members of Parliament reflects a commitment to upholding constitutional principles and ensuring that the Companies Act aligns with the country’s legal framework.
