|
Getting your Trinity Audio player ready...
|
Following the commencement of the implementation of Companies and Allied Matters Act (CAMA 2020), Corporate Affairs Commission(CAC) said it has reclassified many limited liability companies as inactive for their failure to submit their audited financial returns or transactions.
Garba Abubakar, Registrar-General of CAC, gave this information in Abuja at an interactive session with newsmen over the weekend.
Abubakar said the implementation of CAMA 2020 has begun in earnest, adding that the Act was gazetted by the National Assembly in November 2020.
While the total number of companies declared as inactive were not revealed, Registrar-General explained that the status of such affected companies has been posted on the Commission’s website.
Read Also: Heirs Holdings’ $1.1bn OML 17 deal a vote of confidence in Nigerian economy
He, however, clarified that no company has been de-listed by the Commission, adding that the process of delisting the names of companies under the new law is cumbersome.
“The provisions of the Companies and Allied Matters Act 2020 has made the process of delisting companies more cumbersome to carry out,” Abubakar.
Unlike before, where CAC had reasonable cause to believe that companies were no longer carrying out its duties, Abubakar said: “We write to them, but under the new law, it will take us up to 10 years to delist them.”
Explaining what the CAMA 2020 says about delisting a company, he said: “You can’t delist until after 10 years. The only innovation in the new law is any company that has not carried out business or does not have an existing obligation can approach the CAC to be delisted.
