The full implementation of the controversial CAMA 2020 which some circles are promoting as a major game-changer in the corporate regulatory landscape will commence from January 1, 2021.
The National Assembly passed an amendment in 2018, and President Muhammadu Buhari declined assent to it and accordingly requested federal lawmakers reconsider the Bill.
The newly enacted CAMA Act introduces measures to ensure efficiency in the registration and regulation of corporate vehicles, reduce the compliance burden of small and medium enterprises (SMEs), enhance transparency, and stakeholders’ engagement in corporate vehicles.
Overall, it promotes a more friendly business climate. 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.
The Act has 870 sections which are classified into chapters under Parts A to G. 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.
CAC’s Registrar General/CEO, Garba Abubakar, says the Commission will commence full implementation of the CAMA 2020 by January 1, 2021.
Abubakar was speaking when he received the Chairman, Board of Governors of the IoD Centre for Corporate Governance, Dr. Ebenezer Ebun Sonaiya, on a courtesy call to the Commission.
Abubakar said that upon the implementation of the CAMA 2020, the Commission will discard the issuance of Certified True Copies in accordance with data protection regulations and only issue extracts from companies’ records.
Adding, he said that certified copies of forms that contain signatures will not be issued by the Commission except for litigation purposes where absolutely necessary as the law provides that extracts can suffice.
Abubakar described as worrisome, situations where people obtain CTCs only to later imitate signatures in attempt to steal other peoples’ companies or lands and expressed confidence that the CAMA, 2020 will go a long way in addressing such concerns.
Sonaiya said they were at the Commission to give feedback on the just completed CAMA, 2020 training workshop organised by the IoDCCG amongst others.
IoD Centre for Corporate Governance became a legal entity on May 17, 2006. It is a collaborative project of three partners namely: Institute of Directors Nigeria, an affiliate of the Institute of Directors, United Kingdom and member of the African Corporate Governance Network, which is the premier organisation in Nigeria responsible for director development, the Securities & Exchange Commission (SEC), the regulatory authority for the Nigerian Capital Market and the Corporate Affairs Commission (CAC), the sole agency of government responsible for registration of companies in Nigeria.
IoD Centre for Corporate Governance is a registered non-profit organisation committed to improving and promoting good corporate governance principles, standards and practices in Nigeria through advocacy, research, high quality training and Corporate Governance consulting mandates.
The Centre is at the forefront of advocating the application of leading practices by private and public organisations, thereby contributing to, and advancing best and leading practices and culture of good Corporate Governance.
IoDCCG is an affiliate member of the African Corporate Governance Network (ACGN) and is authorized to use ACGN’s Logo in that regard.
Sonaiya described the training held virtually with 42 Attendees as successful and thanked the CAC for being part of it. He therefore requested for continued partnership with the Commission and urged it to support the IoDCC’S next phase of training schedule for the 1st Quarter of the year 2021.