Following the commencement of the implementation of the Companies and Allied Matters Act (CAMA 2020), the Corporate Affairs Commission (CAC) has re-classified many limited liability companies as inactive due to failure to submit their audited financial transactions.
Garba Abubakar, registrar-general of CAC, told newsmen in Abuja that the implementation of CAMA 2020 has begun in earnest. The Act was gazetted by the National Assembly in November 2020.
The total number of companies declared ‘inactive’ was not revealed by the registrar-general.
He, however, clarified that no company has been de-listed by the CAC, adding that the process of delisting the names of companies under the new law was cumbersome.
“The provisions of the Companies and Allied Matters Act 2020 have 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 their 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.