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The Corporate Affairs Commission,CAC is seeking the presidential assent to the Companies and Allied Matters bill that was passed by the 8th Assembly and awaits Presidential Assent.
Azuka Azinge, Acting Registrar-General, briefing newsmen on the status of the amendment of the Companies and Allied Matters Bill, 2019, emphasised the imperatives of a presidential assent to the Bill stressing that is in line with President Muhammadu Buhari administration’s reform agenda to create an enabling environment for businesses to thrive.
According to her, the major thrust of the CAM Bill includes initiatives that promote easy starting and growing of business in Nigeria, by abolishing the requirement for a company to have an authorized share capital; enabling a single person to form a private company, among others.
“The major thrust of the CAM bill includes programs that promote easy starting and growing of business in Nigeria though various channels which include: significantly updating the rules on insolvency; introducing, for the first time, a business rescue process; introducing close-out netting provisions; and the concept of limited liability partnerships, abolishing the requirement for a company to have an authorized share capital; enabling a single person to form a private company, among others,” she said.
She further explained that other contents of the bill seek to ensure more appropriate regulation for micro, small and medium scale enterprises; to enhance transparency and shareholder engagement; to align regulatory framework with international best practice for competitiveness and thus enhance the efficiency of the regulatory process.
According to her, in the context of a global economy, the bill seeks to make Nigeria an investment destination of choice by attracting, retaining and growing investments by introducing orderly and more effective procedures for business rescue and resolving insolvency.
She said:“The highlights of the Bill includes the promotion of policies that will enhance the regulatory environment for and growth of Micro, Small and Medium Enterprises (MSMEs), reduction litigation for the Commission, faster resolution of issues with the Commission, Lower cost to resolution of disputes by the Commission, Reduction of entry barriers for smaller businesses”.
Other key components of the bill include :removal of Consent of Attorney-General of the Federation for Registration of (Memorandum of) a Company Limited by Guarantee; faster registration of companies limited by guarantee.
Others include cheaper registration of companies limited by guarantee;increase in registration of companies limited by guarantee seeking to provide much needed aid and empowerment for the Nigerian people.
They also include abolition of Authorised Share Capital and Introduction of Minimum Issued Share Capital and reduction of cost of registration (no front-loading of costs), support of operations of MSMES, and prevention of opportunities for unlawful dealings in unissued shares.
According to the bill, “There is no requirement to register articles of association where model articles apply. Removal of Requirement of Statutory Declaration of Compliance by Legal Practitioner for Registration of Company, in addition to statement of compliance not required to be under oath.
The bill also enables cheaper cost of registration, direct registration by directors or subscribers of companies; faster registration of companies, among others.
