French Chamber updates members on Companies Act

The Chamber of Commerce and Industry, France (CCFI), Ghana, has organised a breakfast meeting to discuss the 2020 budget, as well as the New Companies Act and its implications for businesses.

It was facilitated by Tax and Finance experts from KPMG, along with legal advisors from B&P Associates, as well as AB Lexmall & Associates.

Speaking at the meeting, a representative from KPMG, Mr Gordon Dadey, said government’s priority for the year was to focus on domestic revenue mobilisation by implementing the strategic pillars of the 2020 budget.

He also highlighted the government’s strategy to allocate funds for development and focus on health, education and infrastructure sectors.
The allocated budget for 2020, he said, in comparison to last year’s suggested a reduction in funds for some sectors.

A statement by the chamber said the event brought together about 90 participants comprising members and associates.

The tax expert however, mentioned that the reductions only implied the transfer of funds to other ventures for development.

He added that the other aspect of the 2020 budget, which should appeal to businesses, included the drive for FDIs with focus on SMEs, development in the transport-aviation sector, the national air carrier, marine infrastructure, energy and trade & industry sectors.

Touching on some issues on taxation, he said, there was no new tax reform introduced.

“However, there shall be a digital transformation of the Ghana Revenue Authority: Digital Taxpayer Experience, to ease the normal process of filing taxes in the country,” he said.

Final elements to the presentation revealed a forthcoming abridged version of the tax reform made available to the public, as well as an adjustment of personal income tax.

New Companies Act

A representative from B&P Associates, Mrs Fawzya Medhat Khalil, who made a presentation on the New Companies Act said, The Companies Act, 2019 (Act 1992) was an upgrade of the 1963 version which highlighted major changes for good corporate governance and transparency in the system.

She also identified the new key areas that had changed in the new Act, particularly one section which advocates the establishement of an autonomous governmental body called the Office of the Registrar of Companies, with a two-year period to set up this office by 2021.

She added that the New Act had accommodated a method of digital communication to enhance better service in terms of following procedure: filing annual returns, incorporation of business and merged sale of undertakings.

Other changes in the New Act include regulations now termed as Constitution and the introduction of suffixes that determine a type of company apart from LTD: PRUC, PUC, LBG and PLC.

The final presentation was by Dr Kweku Ainuson from AB Lexmall & Associates , who highlighted how the changes of the new Act affected directors, company secretaries and shareholders.