Registrar of Companies Extends Rotation of Auditors requirement to December 31

The Office of the Registrar of Companies notified the General Public that all companies were required to comply with the rotation of Auditors as provided by Section 139(11) of the Companies Act, 2019 (Act 992) that “An auditor shall hold office for a term of not more than six years and is eligible for appointment after a cooling-off period of not less than six years” and gave a timeline for the change of Auditors to be completed by the end of August 2022.

All affected companies which have not yet complied with this requirement should take note that the deadline has been extended to 31st December, 2022, after which the sanctions spelt out under Section 139(10) of the Companies Act, 2019 (Act 992) that where a company contravenes a provision of that section, the company, and an officer of the company that is in default are liable each to pay to the Registrar an administrative penalty of two hundred and fifty penalty units will be applied.

Read full statement below

IN THE MATTER OF THE COMPANIES ACT, 2019 (ACT 992)
DIRECTIVE # 4: ROTATION OF AUDITORS A FURTHER GRACE PERIOD

NOTICE TO THE PUBLIC FOR IMMEDIATE RELEASE

1.      Pursuant to Directive # 2: Rotation of Auditors dated 1 November 2020,  the Office of the Registrar of Companies notified the General Public that all companies were required to comply with the rotation of Auditors as provided by Section 139(11) of the Companies Act, 2019 (Act 992) that “An auditor shall hold office for a term of not more than six years and is eligible for appointment after a cooling-off period of not less than six years” and gave a timeline for the change of Auditors to be completed by the end of August 2022.

2.      Companies were advised that, except for companies formed for special purposes, for example, Banking and Insurance or any other businesses which are subject to special regulation such as the Securities and Exchange Act, 2016 (Act 929) and where Auditor rotation was specifically provided for, all other companies were to comply with the law immediately.

3.      All affected companies which have not yet complied with this requirement should take note that the deadline has been extended to 31st December, 2022, after which the sanctions spelt out under Section 139(10) of the Companies Act, 2019 (Act 992) that where a company contravenes a provision of that section, the company, and an officer of the company that is in default are liable each to pay to the Registrar an administrative penalty of two hundred and fifty penalty units will be applied.

For inquiries and clarification, please contact Ms. Domtie Sarpong at +233547599662 or [email protected]

Dated at the Office of the Registrar of Companies, Accra on September 19, 2022.

JEMIMA M. OWARE (MRS.)

REGISTRAR OF COMPANIES