The Institute of Directors Ghana (IOD) is set to sensitise its members and the public on the provisions in the New Company’s Act 992.

The Companies Act, which was passed in 2019, replaces the older version which was in existence for more than 50 years.

One of the objectives of the new law is to inculcate modern practices as well as well as ensure an effective corporate governance regime among registered entities.

The new Act seeks to strengthen corporate governance systems by extending responsibilities and duties of directors.

Speaking at the a seminar by the Institute on Director Responsibilities in the New Companies Act 992, President of the Institute, Rockson Kwesi Dogbegah, underscored the need for training to prepare members for the task ahead.

“The awareness of the provisions in the act is very critical and IOD Ghana will position itself to ensure that all are educated to understand the expectations of the new Act” he stated.

Mr. Dogbegah based on the provisions in the new Act; Directors must uphold ethics of their profession in high esteem

“A careful read of the Act suggests that business cannot be done in this country as usual; it calls for ethical culture and effective leadership. Stakeholders are expecting that we lead organisations in a manner that brings results and that is we must do as directors of organisations,” he added.

For her part, the Registrar-General, Jemima Oware, revealed that, over 600,000 companies could have their names deleted from the database of companies.

“We have over a million companies on the register, but many of them are not doing any serious business. So we are going to come up with a notice very soon,” she stressed.

To avoid any embarrassment, the Registrar-General charged owners of nonfunctional companies to inform them of their names to be taken off the register.

“My plan is to put out the names by next month and start the process. If you don’t want that kind of embarrassment, then you come to the office and update your records; because clearly, about 400,000 are the ones doing serious business,” she added.