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Office of Registrar of Companies initiates process to remove thousands of defaulting companies

February 12, 2024
Office of Registrar of Companies initiates removal process for thousands of defaulting companies

The Office of the Registrar of Companies (ORC) has embarked on a significant move to eliminate approximately 8,531 companies from its register due to their failure to file annual returns and associated financial documents for over two years.

Explaining the rationale behind this decision, the ORC cited the necessity imposed by the Companies Act, 2019 (Act 992), which mandates action against non-compliant entities. The Registrar emphasized the extensive efforts made to inform stakeholders through various channels, including media publications and official announcements.

Despite these efforts, some companies persist in non-compliance, prompting the ORC to initiate the removal process, which is expected to conclude by May 2024. The Registrar clarified that companies still have the opportunity to rectify their status by submitting overdue documentation before the deadline.

However, companies that fail to comply will face severe consequences. The ORC clarified that the delisted companies will be prohibited from conducting business under their registered names for 12 years. Restoration of such companies can only occur through a court order, emphasizing the seriousness of the offence.

Moreover, the ORC issued a warning regarding fraudulent activities, urging companies not to make any payments to unauthorized accounts, as the Office does not operate or authorize transactions through platforms.

In further enforcement measures, starting from May 1, 2024, the ORC will impose an administrative penalty of GH¢1,000 on defaulting companies, in line with the provisions of the Companies Act 2019.

This decisive action by the Office of Registrar of Companies underscores the importance of compliance with regulatory requirements, ensuring transparency and accountability within the corporate sector.

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