The new Companies and Allied Matters Act (CAMA) recently signed by President Muhammadu will encourage more Nigerians to engage in various business activities, attract local and foreign investments, boost production and grow the economy for the benefit of all.
According to the Buhari Media Organisation (BMO), the new law also shows the President’s determination and commitment to deliver more impactful reforms aimed at improving the business environment, in addition to his administration’s on-going huge investments in infrastructure.
The new CAMA Act which is said to be Nigeria’s most significant business legislation in three decades introduces new provisions that promote ease of doing business and reduces regulatory hurdles.
In a statement signed by its Chairman Niyi Akinsiju and Secretary Cassidy Madueke, BMO said the birth of improved CAMA is a testament to government’s various reforms through the Presidential Enabling Business Environment Council (PEBEC).
“In pursuance of its declared goal to improve Nigeria’s Ease of Doing Business ratings, the President inaugurated PEBEC, chaired by the Vice President, in July 2016. PEBEC comprises the Minister of Industry, Trade and Investment (MITI) as Vice-Chair, nine other ministers, the Head of Service of the Federation, Governor of the Central Bank, representatives of the National Assembly, and the private sector.
“PEBEC’s mandate is to make recommendations on institutional reforms to promote Nigeria’s investment attractiveness. In February 2017, PEBEC approved a 60-Day National Action Plan with clear deliverables and timelines for [MDAs] responsible for implementing each line item in the Plan”.
BMO called on Nigerians with a dream of owning their personal businesses to take advantage of the law to register their businesses without any further delay and charged existing businesses owners to maximise the benefits of the law to boost services and production.
The group also assured Nigerians and the international community that the Buhari administration would continue to work assiduously to improve the living standard of the people through viable economic policies and conducive business environment.
Some of the benefits of the new Act include the provision of single-member/shareholder which makes it possible to establish a private company with only one (1) member or shareholder, replacement of authorized minimum share capital, provision for electronic filing, electronic share transfer and e-meetings for private companies and provision for virtual annual general meetings.
It also exempts small companies or any company from having a form appointing auditors, making the appointment of a company secretary optional for private companies, reduction of filing fees for registration of changes and creation of limited liability partnership and limited partnership.
Others are enhancement of minority shareholder’s protection and engagement restriction on multiple directorships in public companies and business rescue provisions for insolvent companies.
Procurement of a common seal is no longer a mandatory requirement. Introduction of Statement of compliance, disclosure of persons with significant control in companies, and enhancement of minority shareholder protection and engagement are other features in the new Act.