The Uganda Registration Service Bureau (URSB) has de-registered 186,000 companies over failure to comply with provisions of the Companies Act, 2012.
In the statement published on the URSB official website by the registrar of companies, Ms. 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 failed to file annual returns for five years were required to file a statement of solvency and show why they should not be struck off the register.
Section 134 (1) of the Companies Act 2012 requires all companies registered by URBS to file annual returns within forty-two days after the annual general meeting of the year
The Companies Act in section 134(2) adds that where a company fails to comply with this section, the firm and every officer of the company who is in default is liable to a default fine of twenty-five currency points which is 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.
