The Corporate Affairs Commission (CAC) Nigeria has disclosed that it is set to ensure the full implementation of the Gazetted Company Allied Matters Act (CAMA) 2020 by 1st January 2020.
This disclosure was made by the Commission in a tweet via its official Twitter handle, after taking the delivery of a copy of the Gazetted Company Allied Matters Act (CAMA) 2020 from the National Assembly on Thursday 19th November 2020.
The tweet reads: “The Corporate Affairs Commission has officially taken delivery of a copy of the Gazetted CAMA, 2020 from the Clerk of the National Assembly on Thursday 19th November 2020 and is putting machinery in place to commence full implementation by 1st January,2021.”
The Corporate Affairs Commission has officially taken delivery of a copy of the Gazetted CAMA, 2020 from the Clerk of the National Assembly on Thursday 19th November,2020 and is putting machinery in place to commence full implementation by 1st January,2021.
— Corporate Affairs Commission (@cacnigeria1) November 23, 2020
What you should know
The Company and Allied Matters Act (2020) was assented to by President Muhammadu Buhari, GCFR on Friday 7th August 2020. The legislation of this act and the subsequent assent were widely applauded by the business community, economists as well as analysts.
The new Act has 870 sections which are classified into chapters under Parts A to G.
(READ MORE: CAC to implement new technology for business registration, customers to print certificates)
• Part A deals with the composition and administration of the registry which functions as a regulator – the Corporate Affairs Commission (‘CAC’).
• Part B has 29 Chapters which stipulates the lifecycle of companies from their incorporation through to liquidation.
• Parts C & D have 11 and 2 chapters, respectively, and set out provisions that govern limited liability partnerships and limited partnerships.
• Parts E & F reprised sections on the registration and regulation of Business Names and Incorporated Trustees, with a few changes outlined in chapters 3 and 7, respectively.
• Part G introduces the quasi-judicial body – the Administrative Proceedings Committee – in its first chapter and covers general miscellaneous matters in its other chapter.
(READ MORE: CAC cancels Enough is Enough’s registration over deception)
Why this matters
The repeal and re-enactment of the Companies and Allied Matters Act, 1990 as CAMA 2020 is a major game-changer in the corporate regulatory landscape.
The overhaul of the CAMA, which is the foundational legal basis for corporate vehicle regulation, is long overdue as this is its first comprehensive update in 30 years.
However, it is important to note that the Act introduces measures to ensure efficiency in the registration and regulation of corporate vehicles, transparency and stakeholders’ engagement in corporate vehicles.
In like manners, in a bid to promote a more friendly business climate, the Act is expected to reduce the compliance burden of small and medium enterprises (SMEs) in Nigeria.
