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Close Corporations Act for amendment

The Ministry of Industrialisation and Trade is revising the Close Corporations Act to ensure entrepreneurs operate in a regulatory framework that cushions them and promotes growth.

Among other changes envisaged will be a requirement that close corporations keep and maintain a register of beneficial owners and provide for incidental matters.

This was said by trade minister Lucia Iipumbu when she introduced the close corporations’ amendment bill in the National Assembly recently.

She said most Namibians prefer registering close corporations as opposed to companies because close corporations are less rigid than companies.

“It, therefore, follows that there is a need to ensure that entrepreneurs who opt to register close corporations should not only receive adequate legal cushioning, but such cushioning should be current,” she said.

Iipumbu said the ministry, through its implementing agency, the Business Intellectual Property Authority, was reviewing the Close Corporations Act and the Companies Act and holding consultations with stakeholders.

She also said Namibia had undergone a second peer review/mutual evaluation by the Eastern and Southern African Anti-Money Laundering Group and the Financial Action Taskforce (FATF).

“The outcome of the peer review thus necessitates a piecemeal amendment to the act to avoid Namibia being greylisted,” she said.

Iipumbu added that the government is cognisant of the fact that the review of the law should be undertaken with the understanding of the role of close corporations in the 21st century and in the country as a whole.

She said should Namibia fail to demonstrate sufficient progress at the end of the 12-month period, the country may be escalated by the FATF, which could be very costly for Namibia. – email:[email protected]