Don't issue licences to companies with arrears, PACRO advises councils

Don't issue licences to companies with arrears, PACRO advises councils
By Chibaula Silwamba
Thursday February 28, 2008 [03:00]

THE Patents and Companies Registration Office (PACRO) has revealed that over 55 per cent of registered companies in Zambia contravene the companies Act by not filing their annual returns to PACRO. And PACRO registrar Anessie Banda-Bobo has advised councils not to issue trading licences to companies that have arrears in filling annual returns at PACRO.

In an interview on Monday, Banda-Bobo said though in the past compliance levels were very low, the situation was improving.

“In 2006, only between 30 and 35 per cent of registered companies filed returns. However, in 2007 the situation has improved and the compliance rate has increased to between 40 and 45 per cent of registered companies. It is anticipated that this year the situation should improve further given the measures that we have put in place.”

She said as part of its reforms, PACRO had put in place measures to ensure that companies comply with statutory requirements as contained in the companies Act.

Banda-Bobo observed that banking and other financial institutions had 100 per cent compliance level because of the stringent regulatory measures which the Bank of Zambia had instituted.

“However, with non-banking financial institutions, the percentage is about 80 per cent,” she said. “PACRO has penalties for late filing of annual returns as well as non-compliance with increase in nominal capital. Defaulting companies are required to comply before they can be provided with any other service at PACRO. Additionally, the Act empowers the registrar to strike-off the register any defaulting companies.”
Banda-Bobo warned that defaulting companies risked being prosecuted.

She said PACRO had been liaising with financial institutions such as the banks to discourage them from conducting business with non-compliant companies.

“The Act gives power to the registrar to prosecute directors whose companies are in default. Using such powers, defaulting companies may have their directors appear in court for non-compliance with the requirement of the companies Act,” Banda-Bobo warned.