IoD urges directors to be guided by New Companies Act

Accra, April 15, GNA – Mr Rockson Kwesi Dogbegah, President, Institute Of Directors (IoD), Ghana, has urged its 42 newly inducted members to be guided by the “New Companies Act “in the discharge of their duties.

The induction held virtually on Wednesday, increased the Institute’s membership to 1,192.

The president said according to the Act, directors were required amongst others to receive approval for major transactions from shareholders, and board meetings should be held at least once in every six months.

He said it was also important that directors ensured that an interest register was kept, directors’ report included in steps taken by the board to build capacity of directors in the discharge of their duties.

Directors were also to appoint qualified persons as secretaries of companies, ratify pre-incorporation contracts within 18 months after incorporation and ensure that auditors did not hold office for a term of not more than six years.

Mr Dogbegah said directorship came with its own associated responsibilities and both executive and non-executive directors would be a lot more answerable for the misconduct of companies.

“Those of us who are on boards only at the Registrar General’s Department records, with absolutely no idea what the firm or company is engaged in, may soon find ourselves on the wrong side of the law,” he said.

Mr Dogbegah said the Institute would continue to push for Good Corporate Governance and aggressively grow its membership, because a critical mass was needed to change the conduct of business in the country for the better.

“I want to leave you with two admonitions- firstly, to be crusaders of Good Corporate Governance, wherever you find yourselves and secondly, to know that the world is seeking more accountability from you and you can no longer be a passive board member or director,” he said.

Professor Albert Puni, Council Member, IoD-Ghana, said Corporate Governance was about oversight and noted that more companies were going the compliance way than stewardship and urged them to be guided by the stewardship theory in their practice.

Dr Nanayaa Tina Owusu-Prempeh, newly inducted fellow, IoD-Ghana, said it was an honour to be inducted in to the fraternity and urged fellows and members to contribute to their respective boards and make impact.

Mr Fred Aryeetey, Chief Executive Officer, IoD-Ghana, said the inductees had gone through training and orientation sessions leading to their membership.

He congratulated them and urged them to be good ambassadors of the Institute.