Corporate Governance in Ghana 2020
The failure and revocation of licenses of some banks and financial institutions in Ghana has brought to the fore the need for more rules that provide for protection of stakeholder interests and engagement. The Companies Act, 2019 (Act 992), the SEC Guidelines on Auditors and the Bank of Ghana (BoG) Fit and Proper Persons Directive are part of the new rules introduced to ensure sound corporate governance practices. Our article on corporate governance delves into these new changes and how it impacts our governance regime. The BoG directive, for instance prescribes the assessment criteria to be used in adjudging the suitability of directors and key management personnel to act in regulated financial institutions. The Companies Act touches on new disclosure obligations imposed on directors and shareholders which includes disclosure of beneficial ownership of shares as well as their politically exposed status and details of directors’ interests in the company’s Interest Register. Furthermore, increased shareholders’ rights is provided for, featuring in major transactions which requires shareholders’ approval with dissenters having the option to request the company to purchase its shares.