Kerry Howard Mwesigwa.
In a sweeping move to enforce compliance and corporate accountability, the Uganda Registration Services Bureau (URSB) has taken decisive action against 875 companies that failed to file their annual returns. This action comes after URSB published a notice earlier, requiring all companies to submit their annual returns. Companies that neglected to do so for five consecutive years were given a last chance to rectify their situation by filing a statement of solvency. Unfortunately, these 875 companies did not heed the warning, leading to their striking off the register.
The recent announcement by URSB to strike off these non-compliant companies from the register serves as a wake-up call for businesses to uphold their legal obligations and adhere to corporate governance norms. As a crucial regulatory body in Uganda, URSB plays a vital role in maintaining the integrity of the corporate sector and ensuring that businesses operate within the ambit of the law.
Pursuant to section 134(5) of the Companies Act 1 of 2012, URSB required all companies to file their annual returns. Section 134(6) of the same Act empowers URSB to take action against companies that repeatedly fail to fulfill this statutory requirement. The ruling by URSB to strike off these 875 companies is a firm step towards reinforcing the importance of compliance and accountability in the corporate world.
Among the companies at risk of being struck off include Kithad & Family Ltd, 2000 Limited, 5 Star (U) Limited, A.T.A Company Limited, Abarjok Manufacturing & Trading Co. Limited, Abercrombie & Kent (U) Limited , Abrar Company Limited among others
The striking off of these 875 companies has significant implications for the affected entities. They now lose their legal status as registered companies, and their existence in the eyes of the law ceases to exist. This means they can no longer operate as legitimate businesses, conduct transactions, or enjoy the protection and privileges that come with being registered.
