Former AGI boss bemoans obsolete Companies’ Code

A former president of the Association of Ghana Industries [AGI], Dr. Prince Kofi Kludjeson, has made a strong case for a revision of the country’s Companies Code.

In his view, the current legislation is obsolete and does not meet modern demands of businesses.

Dr. Kludjeson further bemoaned the inadequacies of laws which protect industries as some decisions regarding high interests, are difficult to adjust.

The former AGI boss was speaking at a forum involving members of the AGI  and the 2016 Presidential candidate of the New Patriotic Party, Nana Addo Danquah Akuffo Addo.

“We don’t have the law that protects the industry or industrialists or entrepreneurs in this country…Please let us go back and see how we can factor this in. it is not late to do so,” he said.

The forum which focused on outlining the opposition party’s commitment to build capacity of local businesses if voted into power, also engaged the businesses on major challenges impeding their growth and development.

Dr. Kludjeson was also confident that a review of the current companies’ code will re-inforce government’s control in ensuring that the central bank creates an environment for a reduced interest rates.

“On issues bordering on interest rates, the Bank of Ghana Governor, the President of Ghana and the Finance Minister cannot even control the banks to reduce their interest rates. The law does not allow them, so how are we going to get the interest rate to go down?” he queried.

AGI wants policy rate reduced

Kofi Kludjeson’s remarks follow some agitations by the Association of Ghana Industries impressing on the central bank to reduce the policy rate and assist businesses to thrive.

The Chief Executive Officer of the AGI, Seth Twum Akwaboah stated that a reduction would have been much appreciated.

“Maintaining the policy rate at 26 percent means that cost of credit will not come down but now considering the stability achieved since the beginning of the year, businesses were expecting a bit of reduction to give us some comfort because by reducing it, it is very likely that our cost of credit will also come down.”

By: Jessica Ayorkor Aryee/