by Linda Straker
- Oldest NGO/NPO registered in 1993; youngest registered in 2015
- Where reasonable cause to believe that a company is not in operation, registered companies are struck off
- Struck-off notice published in 27 January 2023 edition of Government Gazette
The Corporate and Intellectual Property Office (CAIPO) has applied Section 483 of the Companies Act to several registered non-governmental organisations (NGOs) or Not-for-Profit Organisations (NPOs) whose directors have failed to indicate that the entities are carrying on business or in operation.
NGOs/NPOs are required to update their records at the CAIPO annually. These include presenting audited financial statements, change of directors, and annual reports. These are some of the documents referred to as good-standing reports. The oldest was registered in 1993, while the youngest was registered in 2015.
That section of the law provides the Registrar to strike off registered companies where there is reasonable cause to believe that a company is not carrying on business or in operation. However, before the struck-off notice is published in the Government Gazette, communications must be done to reach the directors listed in the legal document at the time of registering the organisation.
The first step is for the Registrar to send to the company by post a letter inquiring whether the company is carrying on business or in operation. However, “If the Registrar does not within one month of sending the letter receive any answer thereto, he or she shall within 14 days after the expiration of the month send to the company by post a registered letter referring to the first letter, and stating that no answer thereto has been received and that if an answer is not received to the second letter within one month from the date thereof, a notice will be published in the Gazette with a view to striking the name of the company off the register,” as the second step.
The third step, the law said, “If the Registrar either receives an answer to the effect that the company is not carrying on business or in operation, or does not within one month after sending the second letter receive any answer, he or she may publish in the Gazette, and send to the company by post, a notice that at the expiration of three months from the date of that notice the name of the company mentioned therein will, unless cause is shown to the contrary, be struck off the register and the company will be dissolved.”
The law further explained that “If, in any case where a company is being wound-up, the Registrar has reasonable cause to believe either that no liquidator is acting, or that the affairs of the company are fully wound-up, and the returns required to be made by the liquidator have not been made for a period of 6 consecutive months, the Registrar shall publish in the Gazette and send to the company or the liquidator, if any, notice as done in step 3.
It is understood that the CAIPO office struck off the NGOs/NPOs after more than 24 months of sending communications to the addresses listed in the legal documents at the time of registration.
“Notice is hereby given that in accordance with the Companies Act, Cap. 58A of the Continuous Revised Edition of the Laws of Grenada, 20l0, the following Non-Profit Companies have been struck off the Register of Companies pursuant to Section 483,” said the Gazette. The struck-off notice, which is published in the 27 January 2023 edition of the Gazette, listed 17 companies.
The companies in the 27 January edition of the Gazette are:
- Bel Air Fruit Plantation Inc. Company No. 2 of 2015-7242
- Brizan Progressive Organisation Corp. Company No. 49 of 1999-2998
- Heritage Theatre Company of Grenada Inc. Company No. 74 of 1999-3023
- Golden Dove Club Inc. Company No. 35 of 1998-2853
- The Grenada Human Development Institute Inc. Company No. 53 of 1998-2871
- Tv 2000 Promotions Company No. 54 of 1998-2872
- Friends Of Grenada Hospitals Association Corp. Company No. 95 of 1998-2913
- Youth For the Future Inc. Company No. 83 of 1998-2901
- G F Hope Inc. Company No: 72 of 1998-2890
- Grenada Charity Foundation Inc. Company No. 19 of 1998-2837
- Children’s Assistance Programme Company No. 27 of 1993-2228
- The Willie Redhead Foundation for The Preservation & Urban Renewal of St George’s Company No. 42 of 1994-2350
- Marine And Yachting Association of Grenada Inc. Company No. 45 of 1999-2994
- Grenada Swiss Business School Company No. 47 of 1998-2865
- Ocean Spirits Incorporated Inc. Company No. 68 of 1999-3017
- Drake’s Grenada Children’s Trust Inc. Company No. 111 of 1999-3060
- Philomena La Qua Foundation for The Performing Arts Inc. Company No. 33 of 1999-2982
Over 1,000 NGOs/NPOs are registered with CAIPO, but several are not active and the struck-off notice is aimed at cleaning up the list. All active registered NGOs/NPOs are required to register with the Anti-Money Laundering Commission as part of financial regulations.
Grenada’s Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) Mutual Evaluation Report which was published in September 2022 stated that Grenada completed its terrorist financing risk assessment, and concluded its overall threats and vulnerabilities was medium-low. However, a key finding is the subset of NPOs is likely to be at risk for terrorism financing abuse within the jurisdiction.
NPOs in Grenada are subject to AML/CFT supervision by the Financial Intelligence Unit (FIU) and the AML/CTF Commission. All NPOs are required to register with the AML/CTF Commission every year.
