Description
Introduction To Company Law & Practice With Company And Allied Matters Act 2020 By Chris C. Wigwe
President Muhammadu Buhari, on Friday 7 August 2020, assented to the Companies and Allied Matters Bill (“CAMA 2020”, “the Act”), recently passed by the National Assembly. The President’s assent to CAMA 2020 repealed and replaced the Companies and Allied Matters Act, 1990 “the Repealed Act”). The Act is viewed as a welcome development and an attempt to add vigour to government’s economic reforms and ongoing initiatives on the ease of doing business in Nigeria. The Repealed Act which was designed after the English Companies Act 1985, was generally regarded as obsolete and unable to address key emerging business and investment issues. The Act has introduced sweeping reforms to the administration of compaies Notably, the Act provides for the registration of private companies with a single member or shareholder, single directorship for private companies, Limited Liability pPrtnerships, Limited Partnerships, and reduced registration fees for small companies. The Act further makes elaborate provisions for the administration, compromise, voluntary arrangements, netting and schemes of contract to ensure the sustainability of businesses and a formal cessation process. Furthermore, the Act abrogates the need for statements of compliance, replaces the concept of “authorized share capital” with “minimum share capital” to reduce the cost of incorporation. The CAMA 2020 also allows for electronic filing of forms and resolutions, electronic share transfers, electronic signatures, as well as virtual general meetings by private companies. In this edition of our newsletter, we have addressed the major alterations and innovations introduced by the Act under the following key headings: • The Corporate Affairs Commission • Incorporation of Companies and Incidental Matters • Limited Liability Partnership • Limited Partnership • Incorporated Trustees
