Company Law in Ghana

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a company?

A special legal vehicle created to do business in society.

What is the primary aim of a company?

To engage in business and make profits (correct)

To create jobs

To provide social services

To govern a country

What regulatory document defines company structures in Ghana?

Companies Act, 2019 (Act 992)

The modern company law in Ghana has roots from the _____ days.

colonial Signup and view all the answers

Act 992 is the only regulatory document for companies in Ghana.

False Signup and view all the answers

Which of the following was a significant development in Ghana's company law in 1958?

Appointment of Professor LCB Gower to reform the Companies Ordinance Signup and view all the answers

What significant report did Professor LCB Gower provide?

Recommendations for the amendment and alteration of the Companies Ordinance. Signup and view all the answers

What is a company?

A special legal vehicle created to do business, which can be constituted by individuals or groups. Signup and view all the answers

What does the Companies Act, 2019 (Act 992) in Ghana describe?

How various types of companies are formed and dissolved. Signup and view all the answers

The modern company law in Ghana has its roots in the colonial period.

True Signup and view all the answers

What was the Companies Ordinance of 1907 based on?

The English Companies Act of 1862. Signup and view all the answers

What major reform was performed by the Nkrumah government in 1958?

They appointed a working party to revise the Companies Ordinance of 1907. Signup and view all the answers

The document that describes the rights, duties, power, and liability of company members and officials is the Companies Act, 2019 (Act ______).

992 Signup and view all the answers

What was the purpose of the Gower Commission established in 1958?

To reform company law in Ghana. Signup and view all the answers

Match the following sources of company law in Ghana with their descriptions:

The Constitution of Ghana = Fundamental legal framework Statutory Provisions = Written laws enacted by the state Case Law = Legal principles established through court decisions Theoretical Framework/principles = Underlying concepts and theories guiding company law Signup and view all the answers

Study Notes

What is a Company?

There is no single agreed definition of a company.
Many consider it a special legal vehicle for conducting business in society.
Companies can be formed by individuals, groups, or associations.
The primary aim of most companies is profit-making, however some exist for other reasons like NGOs, Post Office, and Data Protection Commission.
Note the Government policy on privatization of SOEs, which is outlined in the Statutory Corporations (Conversion to Companies) Act, 1993 (Act 461).
The company is a flexible legal structure that can accommodate the needs of individuals or groups.
Companies are often defined by the statutes regulating them.

History of Company Law in Ghana

The modern company law in Ghana has its roots in the colonial era.
The development of industries like cocoa, timber, and mining in the Gold Coast attracted foreign companies.
Regulations were needed to govern these companies.
The Companies Ordinance of 1907, based on the English Companies Act of 1862, was enacted.
The 1862 Act was deemed unsuitable for the Gold Coast and was later replaced by the 1908 English Companies Act.
Ghana's independence in 1957 brought a wave of civic nationalism.
Prof. Gower described the 1907 Act as outdated and unfit for modern commercial needs.
In 1958, Nkrumah's government formed a working party to revise the 1907 Ordinance.
The draft provided by this working party was a copy of the 1948 UK Companies Act.
This draft was rejected due to its incompatibility with the prevailing nationalist sentiment.
The Gower Commission was established in 1958 to reform Ghanaian company law.
The Commission was tasked with examining existing company law and making recommendations for its amendment.

Sources of Company Law in Ghana

Constitution of Ghana
Statutory Provisions
Case Law
Theoretical Framework/principles

What is a Company?

No single agreed definition of a company
A special legal vehicle used for conducting business in society
Established by:
- An association or group of associations
- An individual or group of individuals
- A combination of associations and/or individuals
Primarily aims to make profits:
- However, other companies exist for different purposes, such as NGOs, the Post Office, and the Data Protection Commission.
- Government policy of privatization of state-owned enterprises (SOEs): Statutory Corporations (Conversion to Companies) Act, 1993 (Act 461)
Flexible structure that accommodates the needs of one person or a group of persons or associations
Often referred to as the legal structure or kind of structure covered by company Statutes.

Sources of Company Law in Ghana

The Constitution of Ghana
Statutory Provisions
Case Law
Theoretical Framework/principles

Brief History of Company Law in Ghana

Modern company law has roots in Ghana's colonial period.
Rapid development of Gold Coast cocoa, timber, mining, and other merchant ventures attracted outside companies.
Required legal framework to regulate these operations:
- The Companies Ordinance of 1907 was based on the English Companies Act of 1862.
- The 1862 Act was considered unsuitable for the Gold Coast and the UK itself later enacted the English Companies Act of 1908.
Independence in 1957 and ensuing civic nationalism led to scrutiny of the 1907 Ordinance.
Prof. Gower deemed the 1907 Act outdated, needing revision.
Nkrumah government appointed a working party in 1958 to revise the 1907 Ordinance.
The draft prepared by the working party, modeled after the 1948 Companies Act of the UK, was rejected.
Gower Commission (1958) led by Prof. LC Bartlett Gower aimed to reform company law by:
- Examining the existing law and recommending necessary amendments and alterations.
- Assessing the laws of other African states.
- Suggesting new legislation.
- The Commission was established by the Governor General's Gazette on August 25th, 1958.
The Gower Commission, through its findings and recommendations, helped shape and modernize the modern company law of Ghana, establishing the foundation for the current Companies Act, 2019 (Act 992).

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz explores the concept of companies within the context of Ghana's legal framework. It covers the definition, formation, and history of company law in Ghana, highlighting important legislation such as the Companies Ordinance of 1907. Understanding these principles is crucial for grasping the role of companies in society.