Members of Parliament (MPs) have openly admitted to an oversight in the passage of the Companies Act 2019, specifically regarding a provision that disqualifies individuals facing charges from serving as company directors. The Supreme Court has deemed this provision inconsistent with the 1992 Constitution, prompting MPs to acknowledge the error and request amendments.
A report by citinewsroom.com reveals that MPs have recognized a mistake in the Companies Act 2019, specifically in a provision related to the eligibility of individuals facing charges to serve as company directors. This revelation follows a Supreme Court order, which declared the provision inconsistent with the 1992 Constitution. Lawyer Derick Adu-Gyamfi brought the case to court, arguing that certain subsections of the Act were unconstitutional and violated principles such as fair hearing.
Call for Amendment
Haruna Iddrisu, the MP for Tamale South, openly admitted the legislative error and called upon the Attorney General to swiftly present amendments to Parliament for review and approval. He stated, “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.”
Sarah Adwoa Safo, MP for Dome-Kwabenya, supported Iddrisu’s call for amendment and acknowledged the role of the Supreme Court in highlighting the issue. She emphasized the need for the Attorney General to bring a proposed bill to amend the relevant portion of the Companies Act.
“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,” Safo added.
This admission of the legislative oversight and the subsequent call for amendments demonstrate a commitment among MPs to address constitutional inconsistencies and ensure that the Companies Act aligns with the principles outlined in the 1992 Constitution.