The Registrar-General of Corporate Affairs Commission (CAC), Mr. Garba Abubakar, says various initiatives been embarked upon to reposition the Commission to be a world class registry and in line with Ease of Doing Business of the federal government.
In an interactive session with members of the Commerce and Industry Correspondents Association of Nigeria (CICAN), Abubakar explained that they have ensured compliance with the new law.
He said any company that has not been filing its financial returns within a specified time is classified as inactive.
He also noted that they have re-classified many companies as being inactive because they have not been filing their returns.”
On the implementation of Companies and Allied Matters Act (CAMA 2020), Abubakar said that many limited liability companies have been declared as inactive for their failure to submit their audited financial returns or transactions.
According to him, the implementation of CAMA 2020 has begun in earnest, adding that the Act was gazetted by the National Assembly in November 2020.
He however, noted that the total number of companies declared as inactive was not revealed, he pointed out that the status of such affected companies has been posted on the Commission’s website.
He 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.
His words: “The provisions of the Companies and Allied Matters Act 2020 have actually made the process of delisting companies more cumbersome to carry out.
“Unlike before, where CAC has reasonable cause to believe that companies are no longer carrying out its duties, we will write to them, but under the new law, it will take us up to 10 years to delist them.
“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 existing obligation can approach the CAC to be delisted,” he said.
