THE COMPANY LAW OF TANZANIA: QUEST FOR THE CONTROL OF THEREGISTRAR’S POWER TO STRIKE OFF COMPANIES OF THE REGISTER1.By Saphy Lal Bullu2Abstract.The history of the Company Law in Tanzania, was inherited from the both British Lawsof 1929 and the Indian Laws of company of 1913. As regard to JALO, these said lawswere adopted in full without considering the Tanzanian social standard of life with itscitizen’s economic condition of its citizen, the laws become incompatible withTanzanian. This was realized mainly after privatization of public enterprises inTanzania that people have stated to know the uses of the company laws in Tanzaniawidely.According to the history of the Company Law in Tanzania, these laws were adopted infull without considering the Tanzanian social standard of life with its economiccondition of its citizen. There is a need for Tanzania to have our own company lawwhich corresponds to our social and economic condition rather than copying fromother laws like Indian and Britain laws which were made to suit their social andeconomic conditions.The Companies Act clearly stipulates the procedure that needs to be taken by theRegistrar to strike the name of the company off the register. Striking off companieshappens once a Registrar approves that a company is not carrying on business or isnot in operation. A company will be considered to be in operation if it is in the courseof being wound up and not carrying on any business so long as it remainsundissolved.The power conferred on the registrar by section given above in relation to defunctcompanies is also extended to companies, which are in the process of being woundup. The power becomes exercisable if the registrar has a reasonable cause to believeeither that no liquidator is acting, or that the affairs of the company are fully woundup, and that the returns required to be made by the liquidator have not been madefor a period of six consecutive months. He then publishes it in the gazette and sendsto the company or the liquidator, if any, a notice that at expiration of three monthsfrom the date of the notice the name of the company will, unless cause is shown tothe contrary, be struck off the register and the company is dissolved.The law as it stands today does not afford sufficient protection of the interest of thestakeholders, company members and the nation at large when it comes to striking ofcompanies off the register.1 This Article is a revision of the author’s LL.B compulsory research paper submitted to The OpenUniversity of Tanzania in partial fulfilment of the requirement for the award of LL.B Degree.2 The author is a Tutorial Assistant in Law at The Open University of Tanzania and Legal Office with EscoLaw Chambers, Advocates.
