GHRA has not been in good standing for nearly three decades - Nandlall
The Guyana Human Rights Association (GHRA) has not been in good standing under the Companies Act for three decades and as a result owes a hefty amount, Attorney General Anil Nandlall said in a statement yesterday.
In the statement, Nandlall, labelled the GHRA as “defunct” stating that it has been “masquerading” as an exemplary civil society organisation, and continues to “deceive” the nation as it relates to its legitimacy. He also pointed out that contrary the organisation’s claim of having all its “ducks in a row,” it has been not been in good standing for nearly three decades.
Nandlall referred to a press statement dated March 20, 2023, where the organisation categorically stated that they had all their “ducks in a row as far as routine legal and financial matters are concerned.” This, he noted, was in response to a statement penned by the Senior Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh, which “exposed” the organisation and highlighted its partisan practices.
According to the release, the records prove that the organisation, which was incorporated on the 27th of September 1979, is not in good standing as it had failed to file its Annual Returns since incorporation. Further, it had failed to apply for Continuance under Part IV, Division B of the Companies Act and therefore owes the State some $38,649,600.
It was explained that Section 336 (1) of the Companies Act states that every former-Act Company shall within two years after the commencement of the Act (a) apply to the Registrar for a certificate of continuance under this Act; and (b) comply with the requirement of section 9. The commencement date of the Companies Act is September 27, 1991.
And in accordance with Section 342 of the Act, “when a former-Act company fails to apply to the Registrar for a certificate of continuation within the time limited therefor under Section 336, then, after expiration of that period (a) the former-Act company may not, without leave, sue in any court but may be made a defendant to a suit; (b) no dividend shall be paid to any shareholder of the formerAct company; and (c) every director or manager of the former-Act company shall be liable to a penalty of six hundred dollars ($600) a day for each day during which the former-Act company carries on its undertaking.”
From the date of failing to apply to the registrar for a certificate of continuance to end of February 2023, is a period of twenty-nine (29) years, and five months, the release added.
From the time of its incorporation, the company has had six subscribers, the AG said. The calculation of the penalty for GHRA is as follows: 6 subscribers x $600 per day = $3,600 per day for all subscribers
$3,600 x 365 days per year = $1,314,000 penalty for one (1) year
$1,314,000 x 29 years = $38,106,000 for 29 years October 2022 (31 days) - $3,600 x 31 = $111,600 November 2022 (30 days) - $3,600 x 30 = $108,000 December 2022 (31 days) - $3,600 x 31 = $111,600 January 2023 (31 days) - $3,600 x 31 = $111, 600 February 2023 (28 days) - $3,600 x 28 = $100,800 Total = $38,649,600 Nandlall’s statement on the GHRA will underline concerns in parts of the public that the government is on an unrelenting campaign against segments of civil society that have criticised it. Questions will also be asked about the grounds for which the AG’s Chambers divulges the status of registrants under the Companies Act and for what purpose.