In a significant legal development, the Supreme Court of Ghana has recently struck out sections 13(2)(h)(i) and (ii) of the Companies Act 2019 (Act 992), deeming them inconsistent with the 1992 Constitution.
This ruling has profound implications for the corporate sector, particularly concerning the qualifications and appointment of directors.
“This ruling has profound implications for the corporate sector, particularly concerning the qualifications and appointment of directors..”
1. Background of the Ruling
The contested provisions of Act 992 outlined specific criteria for the appointment of directors, including restrictions based on prior criminal convictions and involvement in insolvent companies. The Supreme Court’s decision underscores the importance of aligning corporate legislation with constitutional principles, ensuring that individual rights are upheld within the corporate governance framework.
2. Implications for Businesses
This judicial intervention necessitates a review of company policies and procedures related to director appointments. Companies must now ensure that their governance structures comply with the constitutional standards set forth by the Supreme Court. Legal advisors play a crucial role in guiding businesses through these changes, ensuring that corporate practices are both legally sound and constitutionally compliant.
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3. Moving Forward
As the legal landscape evolves, businesses are encouraged to stay informed about legislative changes and judicial rulings that impact corporate operations. Engaging with legal professionals can provide valuable insights and assistance in navigating these developments.
For more detailed information on how this ruling affects your company or to seek legal advice, please contact our corporate law team.
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