by Catherine Abenaitwe, ABM Associate Attorney

 

A voluntary winding up of a company is almost always easier than going through the courts. Voluntary winding up allows the company to move at its own pace, settle its debts, credits, liabilities, and accounts, without any orders or directions of court. However, in order to qualify for a voluntary winding up, a company must meet a very important condition – it must have the ability to pay all of its debts in full.

 

In Uganda, a company incorporated or registered under the Companies Act may be dissolved or deregistered in different ways and for different reasons. Some common reasons are financial difficulties or disagreements among the members. The process of closing down a company and having it deregistered is called ‘winding up’. Under the The Companies Act, (Act No. 1 of 2012), there are two modes of winding of a company in Uganda:

 

1. By the Court (compulsory)

 

2. By the Members (voluntary)

 

Members’ Voluntary Winding Up (Sec. 268-272)

 

When a company is solvent and capable of paying its liabilities in full; the members may, by resolution, decide to voluntarily wind up the business of the company. A declaration of solvency, stating that the company is capable of paying its debts in full, is mandatory for a voluntary winding up.

by Joshua Asiimwe, ABM Associate Attorney

 

 

Ugandan law does not mandate private companies to adopt corporate governance principles under the Company Act. This is because corporate governance is a new creature to Uganda, having been introduced by the Companies Act of 2012. However, everyone who is involved in the operation of a company or is considering starting a new company should know that application of the principles of corporate governance is very important to the life of company, especially in the following ways:

 

  1. Good corporate governance ensures corporate success and economic growth;
  2. Strong corporate governance maintains investors’ confidence, as a result of which, the company will be able to raise capital efficiently and effectively;
  3. Good corporate governance lowers the capital cost;
  4. When a corporation follows corporate formalities, there is a positive impact on the share price;
  5. Corporate formalities provide proper inducement to the owners as well as managers to achieve objectives that are in interests of the shareholders and the organization;
  6. Good corporate governance also minimizes waste, corruption, risks and mismanagement.
  7. Good corporate governance helps in brand formation and development; and
  8. It ensures management that fits the best interests of all.
Corporate governance is the mechanisms, processes and relations by which corporations are controlled and directed.

by Muheirwe Nivah Kelly, ABM Associate Attorney

 

No one can legally be arrested in Uganda without reasonable suspicion of crime. However, police often make arrests without any evidence to back it up. These types of arrest are unconstitutional and illegal. This article will explain what constitutes a legal arrest and how Ugandan criminal procedure protects a person arrested of an alleged crime.

 

GROUNDS FOR ARREST

 

Arrest is the taking or keeping of a person in custody by legal authority (see Black’s Law Dictionary 8th Edition). Article 23 of The 1995 Constitution of the Republic of Uganda states that no person shall be deprived of personal liberty. This right, however, is not inviolable. The right to personal liberty can be lifted in several cases:

 

1. In execution of the sentence or order of a court, whether established in Uganda or another country or from an international court or tribunal in respect of a criminal offence of which that person has been convicted, or of an order of a court punishing the person for contempt of court; or

 

2. In execution of the order of a court made to secure the fulfillment of any obligation imposed on that person by law; or

 

3. For the purpose of bringing that person before a court in execution of the order of a court or upon reasonable suspicion that that person has committed or is about to commit a criminal offence under the laws of Uganda; or

by Ateenyi Rachel Kivuna, ABM Associate Attorney

 

Private security companies are increasingly popular in Uganda. But getting them properly registered requires more work than most other types of companies. This article will help make the requirements and processes more clear for those who are interested in starting their own private security company.

 

When a country’s population increases, so do many social problems such as unemployment, corruption, and insecurity. Uganda is no exception to this, and the country is grappling with high levels of unemployment, which causes many youth to turn to a life of crime. Robberies, banks heists, kidnappings, and murder, which often originate from organized crime, are commonplace, and many of the crimes go unsolved. This heightens public feelings of insecurity and mistrust of ordinary security organizations due to the belief that these government institutions have been infiltrated by criminal elements.

 

To overcome this, the government partners with private security organizations to improve the overall security of the country. Today, many middle class people and organizations opt for private security service providers.

 

Registering a private security company is more complicated than registering other companies. By definition, a "Private Security Organization” is one which undertakes private investigations as to facts or as to the character of a person, or one which performs services of watching, guarding or patrolling for the purpose of providing protection against crime.