In furtherance of enhancing the competitiveness of the business environment in Nigeria, President Muhammadu Buhari on August 7, 2020, signed into law the Companies and Allied Matters Act (CAMA), 2020 which repealed the CAMA, C.20, LFN, 2004. This new CAMA is Nigeria’s most signiﬁcant business legislation in the last few decades and it introduces new provisions which reflect contemporary trends, more flexibility, and reduced regulatory hurdles. With this new Act, there will be increased business productivity and ease in doing business in Nigeria.
Some of the notable innovations/ reforms are as follows:
- Private Companies can now be established with only one shareholder.
- The Companies Registry now allows electronic filings including electronic share transfers.
- Companies can now hold their Annual General Meetings virtually.
- The new Act has created more business vehicles to include Limited Partnerships and Limited Liability Partnerships.
- No Director can serve as both Chairman and CEO of a company.
- It is not mandatory to procure and use a common seal for a company.
- Multiple directorship positions in public companies have been restricted to a maximum of 5 companies at a time.
- To register a company, the promoters are only required to pay for shares that are needed (minimum share capital).
- Small companies are not mandated to appoint auditors at the Annual General Meeting or hold such meetings.
- Two associations with Incorporated Trustees can now merge provided they have similar aims and objects.
- There are new provisions for corporate rescue of companies in distress such as Voluntary arrangements, Administration & Netting.
For more information on the above article, please contact our Business Regulatory & Advisory Team