Govt Issues 77 Company Owners Ultimatum Before Shut Down in 3 Months

The Registrar of Companies, Joyce Koech, has announced the imminent closure of 77 companies across the country within 3 months.

In a Gazette notice dated February 5, Koech revealed that the companies would be closed within the next three months and urged members of the public opposing the move to submit their grievances before then.

According to the notice, this was in line with section 897 (3) of the Companies Act which grants the Registrar of Companies the authority to strike a company’s name off the Register of Companies if the company has not been carrying on business or in operation for a specified period.

“Pursuant to section 897 (3) of the Companies Act, the Registrar of Companies gives notice that the names of the companies specified hereunder shall be struck off from the Register of Companies at the expiry of three (3) months from the date of publication of this notice, and invites any person to show cause why the companies should not be struck off from the Register of Companies,” part of the notice read.

The companies listed include Small and Medium Enterprises (SMEs) that sell their wares online, water suppliers, loan resettlement companies, as well as an investment company.

Others include; a digital laboratory, pharmacies, a public service transportation company, and several car dealers.

However, there is also a collection of real estate companies listed that facilitate the buying, selling, or renting of properties and even land on behalf of their clients.

Although reasons for the dissolution have not been listed, there are several circumstances that may compel the Registrar of Companies to deregister companies.

To begin with, if a court grants a winding-up order, then the Registrar could announce the dissolution of a company. In another instance, a company can be dissolved if it defaults in delivering a statutory report to the registrar.

The most obvious reason why a company can be dissolved, however, is if it ceases operations.

An application to be struck off the register can only be made if a company has not changed its name or has not changed the type of business it conducts.

This announcement comes just a week after 98 more companies were shut down and two weeks after 116 were dissolved. In the latter notice, 115 more companies were earmarked for dissolution in the next three months.