The ex-Minority Leader and Member of Parliament representing Tamale Central, Haruna Iddrisu, has pointed out that the Supreme Court has nullified specific sections of the Companies Act 2019 (ACT 992).

Invoking Standing Order 72 of Parliament, the former leader informed the House about this repeal and commended the Supreme Court for its decision.

He acknowledged that the repeal was a reminder of the limitations of the various arms of government.

“Mr Speaker, I would like to indulge you. I would like to mention to Mr. Speaker and the majority leader that I intend to invoke order 72 to make an urgent statement on a matter which should be of particular interest to you and the house.
Haruna Iddrisu
“Mr Speaker, the Supreme Court has ruled that sections of the Company Code Act 2019 are inconsistent with the 1992 constitution and has accordingly responded to sections of the Company Act on a matter raised by Derrick Adu Gyamfi. I am raising this, to celebrate the Supreme Court in recognizing that within the remits of separation of powers, where powers and responsibilities have limits, this House, the Parliament of Ghana is reminded that our authority is not sovereign; that whatever we do we are subject to the constitution and subject to the checks and balances of the supreme court.”
Haruna Iddrisu

“I commend Adu Gyamfi, too”, he added.

Underscoring the importance of the Companies Act, he stated that the Supreme Court upon the plea of Adu Gyamfi deepened Ghana’s democracy.

“Mr Speaker, I am also raising this because, the Companies Code as you know, as a renowned lawyer, has a lot of consequences on investment. Our investment climate, the attraction of investment, who qualifies to be a director, who does not qualify to be a director, and so on.”
Haruna Iddrisu

Repealed Sections Of Companies Act 2019 (ACT 992)

Specifically, the Supreme Court has ruled that sections 2hi and 2hii of sections 13, 172, and 177 of the act are unconstitutional and violate the principles of fair hearing among others.

“(h) a statutory declaration by each proposed director of the proposed company indicating that within the preceding five years, that proposed director has not been (i) charged with or convicted of a criminal offense involving fraud or dishonesty; (ii) charged with or convicted of a criminal offense relating to the promotion, incorporation or management of a company”
Section 13

Furthermore, Honorable Haruna Iddrisu told Mr speaker the situation which the legislative House finds very embarrassing because, when it comes to exercising the legislative authority of this country, the House is vested with the mandate.

“We are clothed with it under Article 93 but with limitations”, he stressed.

He further indicated that the word in contention was “charged”.

“Mr speaker the word that the Supreme Court has ruled on is that in passing the company code, we used the word, when a person is charged with an offense and not when a person is convicted of an offense. Mr speaker’s words matter when it comes to legislation. So the Supreme Court is saying that the parliament of Ghana in 2019 erred in the use of the phrase when a person is charged with an offense.”
Haruna Iddrisu

According to him, the Supreme Court adjudicated that the Act presumptuously had denied a person, so qualified to be a director, an opportunity for a fair hearing and an opportunity as an innocent person undergoing trial until proven guilty.

Ghanaian parliament — Chamber-Parliament House, Ghana

This, the court finds contravenes Article 19 c of the 1992 Constitution which is on the presumption of innocence.

“A person charged with a criminal offense shall be given a fair hearing within a reasonable time bound by a court and the person will be presumed to be innocent until he is proven or has pleaded guilty.”
Haruna Iddrisu

“We erred, we should eat our humble pie”, he reiterated.

However, he also added that this means that in Ghana, institutions are working and are responsive; the Supreme Court of Ghana thinks that this parliament erred and exercised our authority over the 1992 constitution.

“We are reminded that we will be checked”, he proudly said.

Honorable Haruna Iddrisu thereafter cautioned the leadership of the house to be extra meticulous during the legislation process. He also warned against bills passed in a rush which usually results in such avoidable and embarrassing errors.