Dormant companies to be de-registered
THE Registrar of Companies will, on 1 June 2015, start deregistering companies that failed to re-register or update their operational details to shed light on their current status.
The registry, which falls under the Ministry of Trade and Industry, has been updating its records and calling on all companies registered as far back as 1967, when the old Companies Act was still in effect, to be re-registered.
However, in keeping with the new Companies Act, promulgated in 2011, the Registrar of Companies will deregister companies which failed to comply with section 105 of the Act and section 87 (5) of the law. This is in relation to companies that failed to file their annual reports and financial statements as required under the law.
Said a press release by OneStop Business Facilitation Centre (OBFC) Communication and Advocacy Officer ‘ Malempe Mokoma: “Currently, there are about 17 460 companies which have ignored the call from the office of the Registrar of companies to re-register or update their company’s details to reflect the current status.
“The office of the registrar of companies requested all companies registered before 1st May 2012 to come forward and re-register/update company details.
“The re-registration exercise started on the 1st of July 2013 and was extended until 31 May 2015 whereby only 7 365 companies complied.”
She added that the appropriate filing of annual returns enabled the registrar to determine which companies were still in existence and those that were dormant.
“Moreover, it has come to the attention of the office of the Registrar of Companies that most companies failed to lodge the changes that occurred in their company during the financial year,” further read the press release.
“For instance, change of company registered office address or directors/ officers of the company.
“Therefore, the register of companies did not reflect the current status of the company and the in- formation in the database of the registry was obsolete and long overtaken by events.”
Ms Mokoma said the list of companies to be removed from the register would be published in newspapers, the OBFC website, Lesotho Trade Portal website and the office of Registrar of Companies office.
Analysts have also noted that the current register gives a false impression about the state of the economy, adding that a clean, credible and reliable company register would enable and facilitate the verification process by various stakeholders who also include banks, potential investors and the general public.
Analysts have warned that the current company register gives a false impression about the state of the economy.