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Companies Act enactment a mistake; AG must introduce an amendment – MPs insist

by Emmanuella Asare
November 14, 2023
Parliament resumes recess tomorrow
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Members of Parliament have acknowledged making mistakes in passing the Companies Act 2019.

According to the Companies Act, if a person is charged with a crime, he or she is unable to serve as a director of a business. However, the Supreme Court ruled that that portion of the Companies Act was unconstitutional under the 1992 Constitution.

This was the decision in a constitutional case filed by a lawyer, Derick Adu-Gyamfi, who asked the Supreme Court to remove, erase, or strike out subsections of the Act, among other things.

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Those subsections, he claims, are unconstitutional and undermine the concept of fair hearing, among other things.

Haruna Iddrisu, Member of Parliament for Tamale South, confessed to the inaccuracy in the subsection of the Act and requested that the Attorney General bring a modification before Parliament for consideration and approval.

“We stated in the company’s code 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 doing so, we ask the knowledgeable Attorney General to come before this House as soon as possible with recommended revisions to the company’s code to correct those wrongs.”

Sarah Adwoa Safo, the MP for Dome-Kwabenya, backed Haruna Iddrisu’s requests.

“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.”

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