Registrar General’s Dept to sanction ‘wrongful’ share transfers

good

The Registrar General’s Department (RGD), has served notice it will not be held liable for non-compliance for shareholders who file their transfers directly at the head office.

According to the Department, the current practice practice where shareholders bypass the various respective sub offices contradicts the required procedure. The department also argues that the development disorganizes activities and arrangement at its main office.

Speaking to Citi Business News on the latest move, the Acting Registrar-General, Jemima Oware, emphasized that the directive will be fully implemented from the 3rd of October this year.

“From 3rd October onwards, the department will not accept shared transfer instrument; we will not do that until the individual has fully complied with the Companies Act and the registrar’s office.”

Portions of a statement issued by the RGD read, “We wish to bring to the notice of the General Public and all persons so required by Law who wish to register and file documents at the offices of the Registrar-General’s Department to take note of procedures they are required to follow under the provisions of the Companies Act, 1963, Act 179 before submitting them to the Department for filing.”

It added, “Under section 331(1) of the Act, any document or particulars required to be registered shall be done by the Registrar by inserting the document or particulars in the file so maintained at the Registry.

“The Public is being advised to take note that any document deposited at the Registrar-General’s Department without observing the requirements of the Act as described above should not be deemed to have been properly filed,” it further noted.

Accordingly, with effect from 3rd October, 2016, the Registrar-General’s Department would not accept and file any Deeds of Transfer or Share Transfer Instruments transferring shares to individuals unless it is accompanied by the following:

Proof of ownership of the Transfer (either a copy of the old Share Certificate or a copy of an extract from the Register of Members of the Company;

Proof of the Transaction ( that all procedural matters have been fulfilled, including a Board Resolution authorising the Transaction)

Proof of Transfer (that the Transfer has been properly recorded in the books of the Company).

 

Source: citifmonline