Nana Addo approves the new law on companies

Economic News from Sunday, August 4, 2019

Source: citinewsroom.com

2019-08-04

President Nana Addo Dankwa Akufo-Addo approved the new Companies Act, which replaces the 1963 version.

It was after the new law was introduced by Parliament on Friday, August 2, after its adoption in May this year.

President Akufo-Addo reported on Saturday, August 3, 2019, delivering the keynote speech at the 1st Presidential Fundraising and Awards Dinner of the Ghana Association of Restructuring and Insolvency Advisers, organized at the Labadi Beach Hotel.

Addressing the meeting, the President noted that since the enactment of the Companies Act (Law No. 179 of 1963), a law inspired by the famous and famous English jurist, the professor LCB Gower, the law has only been sporadically changed.

The first recognized review took place in 2003, under the supervision of the late Justice V.C.R.A.C Crabbe, which was ultimately a mere consolidation of the existing provisions of the law and was not presented to Parliament.

In 2008, the Expert Committee on Business Law Reform was created under the chairmanship of His Excellency John Agyekum Kufuor.

The Committee made some innovative policy recommendations for the reform of the Companies Act, which were not pbaded on to Parliament.

"So you understand my understandable admiration when, as part of my government's program to improve the ease of doing business in Ghana, Parliament pbaded a new Corporations Act on May 2, 2019, replacing the 1963 Act. So now we have the Companies Act, 2019, to which, by the grace of God, I approved yesterday, August 2, 2019. The promulgation process is now over, "he added.

President Akufo-Addo was convinced that this new law would significantly improve the ease of doing business in Ghana, strengthen the regulatory and corporate governance framework, and reduce the cost of business compliance.

"I invite the business community of Ghana and those outside our coasts to take advantage of the business-friendly developing environment created in Ghana and to invest in our country. Let me reiterate that Ghana continues to be a haven of peace, security and stability, and even the safest country in West Africa and that legitimate investments are protected, "said the President.

He thanked the Attorney General and her editorial team, the expert committee, chaired by the respected jurist, the former Supreme Court Judge, Judge Date-Bah, the President and Members of Parliament as well as all other actors, including the World Bank, BUSAC and friends from Ghana, for their efforts that led to the adoption of this new law.

President Akufo-Addo added that much remained to be done to carry out the country's reform program, and that the Corporate Restructuring and Insolvency Bill, currently before Parliament , would offer, among other things, a means to help resuscitate troubled but viable economic entities. and liquidation establishments and their ramifications.

With the entry into force of the African Continental Free Trade Area (AfCFTA) and the hosting of the secretariat by Ghana, the President said that the country would become the hub of trade and commerce. Investment in Africa, creating new jobs, expanded conference and hospitality services, improved air and other transport services and related activities.

"As a result, the calendar of reforms of our business law could not have been more propitious," he added.

President Akufo-Addo has also launched the GARIA trust fund, designed to be GARIA's main financing vehicle, which will be managed by an independent board of directors.

"I will ask the Ministries of Finance, Trade and Industry and Business Development to see how effectively they can help the Fund. In the meantime, I personally donate 50,000 GH ¢ as my modest contribution to the Fund, "he added.