OVER 1000 COMPANIES TO BE DEREGISTERED EN MASSE

MBABANE – It’s either you comply or face deregistration and be struck off the register of companies in the Kingdom of Eswatini.

A total 1 012 companies, whose names are known to the Business Desk but will not be revealed for ethical reasons, will not only be deregistered but stand to be dissolved as well.

These entities, which are among the 52 000 locally-registered companies, stand to face the chop for continuous failure to comply with Section 151 of the Companies Act Number eight of 2009, by not submitting their annual returns to the registry of companies.

This is the hard line approach that has been adopted by the Registrar of Companies, Msebe Malinga, in exercise of powers conferred by the Companies’ Act. The legislation stipulates that all companies should submit their annual returns and also pay company renewal fees, which make them eligible to be issued with a trading licence.

Depending on the shares or nominal capital, the minimum amount of money that should be paid by companies as renewal fees starts from E470 (minimum) up to E1 670 (maximum).     
Relating how they eventually uncovered that over 1 000 Company Act were violating the companies by not submitting their annual returns, Malinga explained that between May and September this year, they undertook an internal audit to determine the exact number of fully operational businesses in the kingdom.

He said it was during this audit that they unearthed that there were companies which had not submitted their annual returns for two or more consecutive years.
He said in line with the legislation, they invoked Section 62, which stipulates that if the registrar has reasonable cause to believe that a company was no longer doing business in the country, the registrar issues a notice for the company(s) to show cause why they should not be struck off the registry of companies.

“All the 1 012 companies are expected to show cause within two months why they should not be deregistered,” said Malinga.
Further, he mentioned that on the basis of the fact that their audit lasted for about five months, there was a high possibility that there could be more companies which were in violation of the law.

Asked how much company renewal fees were due as a result of the alleged non-compliance, Malinga disclosed that the average amount of money which should have been pumped into government coffers was over E8 million.

“The mere fact that there are companies which are not submitting their annual returns and not honouring their obligation to pay renewal fees suggests that there are companies which are not operating without trading licences,” said Malinga.

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