ADP Leader Urges Companies To Practice Good Corporate Governance
The Leader and Chairman of the Alliance Democratic Party (ADP), Mr. Mohamed Kamaramba Mansaray on Friday 14th January 2016 applauded the Corporate Affairs Commission (CAC) for organizing a day’s workshop at the Bank of Sierra Leone Complex, Kingtom, West of Freetown for representatives of companies, legal practitioners and stakeholders from various NGOs on the new procedures for submission, collection and regulation of companies’ data.
He enlightened that some of the duties of CAC include the registration of existing companies and company incorporation, processes and procedures revealing that following the enactment of the Companies (amendment) Act 2014 and tabling in Parliament of the Company Regulations 2015, series of changes have taken place in the process of supervising and regulating the incorporation of all companies and related matters.
The ADP Leader and Chairman went on to reveal that CAC was established under the Companies Act 2009 (as amended) to register companies existing in Sierra Leone prior to the enactment of the legislation (Section 531) of the Companies Act 2009) disclosing that giving the number of companies on the register and to ensure that the exercise is conducted in an orderly manner, all existing companies are required to complete the recall form informing that the date of incorporation of a company determines the period within which the completed form is submitted.
He further disclosed that the role of the Commission is to promote good corporate governance as he has realized the significance of providing timely and accurate information to customers and informed proposed investors and existing companies on the rules establishing and managing a company in Sierra Leone.
According to Mr. Mohamed Kamaramba Mansaray, most times businesses make decisions regarding their structures, administration and general operations that are detrimental to their businesses due to the fact that information was not available which could have formed the basis for a better decision asserting that investors are not at all times aware that Directors are employees of their companies and as such owe certain duties to the company and Government institutions.
He continued that Small and Medium Enterprises (SME) have been denied access to financial facilities because they may not have understood the value of keeping proper accounts with little evidence to show that they can sustain their operations asserting, “the absence of structures in the daily management of businesses have posed a major challenge in matters relating to transparency and accountability. The Companies’ Act 2009 now caters for the establishment of a one man company but the amendment does not limit the capital which a private company limited by shares should have to be incorporated or maintained.”
The ADP Leader and Chairman further disclosed that many sole proprietors may wish to take advantage of the opportunity to benefit from the legal status enjoyed by companies and encouraged companies to practice good corporate governance to protect their investors.
He went on to intimate that the penalties for carrying on business for the purpose of distributing profit is that all officers and members shall be jointly liable for payment of discharge debts and liabilities of a company in addition that all officers and members shall be liable to a daily fine not exceeding Le850, 000 according to the Corporate Affairs Act 2009 amended by the 61 Companies Act 2014.
Concluding, he warned people to stop demanded money from companies, that registration of companies is free, admonished companies to avoid paying bribes by following the new procedures in the interest of accountability and transparency reiterating that the processes and procedures are aimed at improving and encouraging companies to practice good corporate governance to protect investors and companies operating in the country and pledged his unflinching support to the success of CAC.
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