Establishing a business isn’t as cumbersome as keeping it in operation for a desirable period of time.
The Registrar General’s Department has caused changes to company registration documents and the Department’s systems to conform to Act 992 of the New Companies’ Act.
The Companies Act, 2019 (Act 992), which was assented to on August 2, 2019, was operationalized from October 1, 2020.
A statement from the Registrar General’s Department, had it that due to the changes, there were developments that it wanted the public to be aware of.
Portions of the statement from the Registrar General’s outfit to this effect read;
“We urge that institutions henceforth accept only documents showing the said changes as indicated. This directive also applies to banking institutions, insurance and publicly listed companies,” it stated.
The statement further elaborated that regulations were now referred to as Constitution, under Act 992, and companies may either file their own constitution, also known as Registered Constitution, or adopt a Standard Constitution as provided for in Act 992.
It noted that Act 992 mandated the Registrar to collect Beneficial Ownership (BO) information of companies.
A Beneficial Owner is an individual or natural person who owns, controls, has interest in, or exercises influence over a legal person (or arrangement) or receives substantial benefits from an individual.
The statement listed companies limited by shares, or guarantees, unlimited and external companies as those required to give their BO information.
“Each company, must set up a Register of Members, maintain and update Beneficial Ownership details in this Register and report to the Register of Companies within 28 days of making such entry in the Register of Members.”
