URSB boss, Mercy Kainobwisho
The Uganda Registration Service Bureau (URSB) has deregistered 186,000 companies over failure to comply with provisions of the Companies Act 2012.
In a statement published on the URSB official website by the Registrar of Companies, Mercy Kainobwisho, she relied her decision on Section 134(5) of the Companies Act 2012, where the Bureau first issued a notice on 20th March 2023, requiring all companies to file their annual returns.
Companies that fail to file annual returns for five years were required to file a statement of solvency and show cause why they should not be struck off the register.
“In accordance with section 134(6) of the Companies Act 1 of 2012, notice is hereby given that 186,000 companies have been struck off the register. We shall continue to review our records and identify other non-complaint companies for action,” URSB’s statement reads in part, further warning that the exercise is set to continue.
Section 134 (1) of the Companies Act 2012 requires all companies registered by URBS to file annual return within forty two days after the annual general meeting for the year, whether or not that meeting is the first or only ordinary general meeting, or the first or only general meeting of the company in the year and the company shall within that period forward to the registrar a copy signed both by a director and by the secretary of the company.
The Companies Act in section 134(2) adds that where a company fails to comply with this section, the company and every officer of the company who is in default is liable to a default fine of twenty five currency points about Shs500,000.
Further in section 134(4), the Companies Act stipulates that; Where a company is dormant, the directors shall notify the registrar within fifteen working days from the date of the resolution for dormancy and the company shall be exempted from filing returns for 12 months; that is the grace period.
The Companies Act in section 134(5) further requires that if after expiry of five years from date specified in subsection (1), the company has not filed any annual returns, the registrar shall require the company file a statement of solvency and show cause why a company should not be struck off the register.
Where the company does not show cause why it should not be struck off the register in accordance with subsection(5), the registrar and publish in the gazette and newspaper of wide national circulation a notice of the striking-off of that company the register as per section 134(6).
