04 Nov 2016

WHAT IT MEANS FOR THE CRANE BANK FILE DISAPPEARANCE

WHAT IT MEANS FOR THE CRANE BANK FILE DISAPPEARANCE

WHAT IT MEANS FOR THE CRANE BANK FILE TO DISAPPEAR FROM URSB

The Crane Bank Saga recently got deeper when it was reported that indeed the Crane Bank File in the Uganda Registration Services Bureau (URSB) went missing.

URSB PUBLIC NOTICE
The notice published by the Bureau on 02nd November acknowledged that the Bank’s file was declared missing on 10th October 10, 2016 and that the matter was reported to the Uganda Police Force. The Bureau also notified the public that it has got a duplicate file with information on the company from July 1990 when it was registered however it did not mention the date of the last update to the duplicate file which is what may be of most interest to any investigations going on into the Bank’s operations.
Many have wondered, why this is important, and does it in any way affect the bank in its current situation. In order to find out whether this event is important, it is necessary to get an understanding of What URSB is and what it does.

WHAT IS URSB?

URSB is the statutory body (this means it was created by an Act of Parliament) which is in charge of carrying out all registrations which are required under Uganda’s laws, maintain the registers of the data and records and generally manage this information which it collects. The information it collects is termed as “public information” meaning it is open to the public to access.

URSB is the place where companies are registered when being formed and all company decisions are supposed to be filed as Resolutions here. This means that all the major decisions a company makes are contained in the file of that Company at the URSB offices. The file of a company will contain key information from the identity of the shareholders to the managerial decisions made by the Directors and by the Members of the Company.

ARE THE FILES KEPT AT URSB SECRET?

The documents at URSB are typically not secret and one can carry out a search at the Companies Registry to find out information about any given company or registered business- this is usually necessary to find out details before dealing with a particular business as a part of “due diligence”

THE EFFECT OF A MISSING FILE

When a file goes missing from the Bureau, it becomes hard for anyone investigating the activities of the business- especially with Companies- which make all their major decisions through documents called “Company Resolutions” and they must be filed at the Registry. A lost file therefore has a negative impact on the integrity of the company in terms of its decisions and activities and their authentication.
Because documents filed at the Company Registry are considered Public documents at the time of filing, there is no need to prove their validity. However, where the file goes missing, the documents not on record purporting to be of the Company cannot just be believed on the face of it and need to be proved.

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