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President Buhari Signs Amended Companies and Allied Matters Bill 2020 Into Law

 

The 30-year old former Companies and Allied Matters Act (CAMA) has been repealed by the new CAMA President Muhammadu Buhari signed into law today.

Here are 10 notable things about the new law that would make business easy in Nigeria:

  1. Introduction of Limited Liability Partnerships: This brings in an important feature of companies into partnerships, thereby partners will no longer have to be held responsible for the misconduct of another partner. Also, partnerships are now conferred with a legal entity and a partner will no longer be responsible for the debts the business incurs.

  2. Name conflicts in the process of registration can now be changed by the Corporate Affairs Commission without a need to go to court. So instead of wasting lots of money on court processes, a simple letter to the Corporate Affairs Commission would solve the conflict.

  3. The statutory audit of accounts which was compulsory before is now optional for incorporated companies that are yet to commence operations or for companies with a turnover of less than N10 million and balance sheet size of not more than N5 million for a financial year.

  4. Companies can now buy back their shares from existing shareholders. This is a huge advantage to the company.

  5. Electronic registration has now been enabled for company registration. This is a huge advancement in the technology industry in Nigeria.

  6. Companies Limited by Guarantee do no longer need the consent of the Attorney-General of the Federation before they get registered.

  7. It is no longer compulsory for companies to acquire a common seal. This therefore means that companies can make valid contracts without the common seal.

  8. Provision has also been made for electronic AGMs and electronic Board Meetings as well. Technology is really winning.

  9. A single person can now form a company, as opposed to the former requirement of two persons before a company can be formed

  10. Use of electronic signature: Here is another aspect where technology wins. Electronic signature is now accepted under the new Companies and Allied Matters Act, 2020

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