The Companies and Allied Matters Act, 2020 (CAMA 2020), which was assented by President Muhammadu Buhari on August 7 repeals and replaces the Repealed Act also known as the Companies and Allied Matters Act, 1990.
CAMA 2020 highlights developmental business changes in the Nigerian while encouraging the Ease-of-Doing-Business (EoDB). It will further be a foundation for a restructuring of the statutory barriers which impedes business growth in Nigeria.
Major provisions in the bill which will influence businesses and companies in Nigeria are taken note of in this article.
The CAMA 2020 which upgrades business space in Nigeria, enables and improve more private and public companies. However, it was made to advance investments and foreign corporations in Nigeria as well.
CAMA 2020
- Single individuals now have a right to form a company according to Section 18. Accordingly, that is applicable only with the compliance of the requirements.
- Improved corporate practice for companies is a major clause to company governance. Section 330 and Section 265(6) of states new exposition for that.
- LLPs as a business structure is now acknowledgeable by sections 746 – 810. It, therefore, positions the legal structures in Nigeria to operate with that of other provinces.
- Certificate of incorporation obtained illegally or improperly will be revoked under Section 41.
- Re-registration of Companies of under section 75 of clause allows a public company to re-register as an unlimited company.
- Foreign Companies can be exempted from the requirement to incorporate a separate entity in Nigeria by application for an exemption directly to the Minister of Trade. Rather than an application to the president through the National Council of Ministers which the Repealed Act states, section 80 of CAMA 2020 re-orders that. Also, CAMA 2020 grants penalty to an exempted company for failing to provide an annual report to the Commission.
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