31/08/2022
Companies Are Now Required To Have A Constitution
Do you do business in Botswana? Do you have a company operating in Botswana? Then this newsflash is for you.
In this weeks episode of updates, we deal with the latest amendments to the Companies Act [Cap 42:01].
Initially companies were not strictly required to have a constitution. The rule was that if you chose not to adopt a company constitution, your company would by default, be governed by the Companies Act. That’s not the case anymore!
With the recent amendments of the Companies Act, all companies registered with the Companies Intellectual Properties Authority (C**A) are required to have a constitution with effect from 25 February 2022.
As a business owner, you may ask yourself the following questions:
My company was registered before 25 February 2022. Do I have to adopt a constitution immediately?
It’s always a good idea to comply with the new law, as soon as possible if you can, but if you cannot, don’t panic! You are given up to 25 February 2023 to adopt and submit the constitution to C**A.
What if I miss the deadline, what will happen to my company?
Should you fail to comply, your company will be deregistered. You will only have it registered upon submission of the company constitution and payment of a penalty fee of BWP2,500.
Where do I start?
We are your business partners – we will prepare a constitution for your company and ensure that it is submitted to C**A before 25 February 2023.
If you would like to draft a constitution for your company, please contact us on 73 230 230 or [email protected]
