Accra: Stakeholder Engagements On Companies Bill 2018 Held

The Parliamentary Committee on Legal and Parliamentary Affairs has held a Stakeholders' engagement with relevant bodies in Accra.

The stakeholders comprises members of GIPC, Ghana Insurers Association, Small Scale Industries, members of PEF and STAAC.

In his address, the Chairman for Parliamentary Committee on Constitutional Legal and Parliamentary Affairs Hon Ben Abdalla, noted that the stakeholders engagement was necessary to examine a Companies Bill 2018 Law before Parliament

He said the Bill among other things seek to amend critical provisions of the Companies Act 1963(Act179) to reflect several novel concept in Company Law in respect to doing business in Ghana.

"The Companies Bill will also re-enact several provisions of Act 179, because the law has been in existence since 1963 without any hindrance"

"Your rich and invaluable inputs to strengthen our enactment process matter" Hon Abdallah maintained

"I seize this opportunity to thank sincerely the Business Law Reform of Experts that has tirelessly and diligently since 2008 been working on the Companies Bill so as to facilitate a critical discourse" he added

A Legal expert Mr Seth Kwasi Asante in his presentation stated that Clause 11(1) requires a company to ratify all pre- incorporation contracts within 18 months after its formation.

Mr Seth Asante said no reason was provided in the memorandum for the introduction of this limitation period for ratification of prey incorporation contracts.

The legal luminary maintained that there is no case law precedent to suggest that the current provision under section 13 of the Companies Act, which does not impose any time limit on ratification, has created any mischief or hardship.

"Am providing my comments on the Companies Bill to the Constitutional, Legal & Parliamentary Committee to assist the Committee in the execution of its mandate and to contribute to the enactment of a robust new companies act consistent with the needs of a developing economy "

The Private Enterprise Federation, (PEF) in their contribution's enumerated among other things the lack of Policy Framework to direct businesses

"It is suggested that the ultra vires doctrine as in the 1963 Act should be maintained to ensure that businesses conduct the business for which the entity is registered for as stated in its incorporation document " PEF submitted