Alhaji Garba Abubakar, Registrar-General, Corporate Affairs Commission (CAC) says the commission is putting machinery in place to begin full implementation of the Companies and Allied Matters Act (CAMA) 2020 by Jan 1, 2021.
Abubakar made this known at the Institute of Directors (IoD) National Stakeholders Forum on the CAMA 2020, on Wednesday.
He said that the commission was working on an existing software, expected to be ready by middle of December, to accommodate all the changes available in the new Act.
The registrar-general said the software was upgraded to be end to end, with all modules incorporated with interface for document uploads, user names, passwords, among other secure electronic measures.
He, however, said April 1 was take off date for companies that fell under Limited Partnership and Limited Liability Partnership categories.
Abubakar said that the measures were to ensure that the infrastructure required to achieve the objectives of the Act to enhance operational and regulatory functions of business were enhanced.
“The Act has introduced measures to make Nigerian company law better fitted to today‘s realities, improve the business environment and performance across the economy as well as reduce direct compliance costs for businesses.
“We recognise that the Act is not a perfect piece of legislation, and this is to be expected for a 606-page, 870-section legislation which is arguably the largest single legislation to come out of the annals of the Nigerian legislative chamber.
“Generally, however, the Act has been acclaimed a major reform landmark in the promotion of enterprise in Nigeria and the reform of her business environment,” he said.
Abubakar said that the CAC had put together the Draft Companies Regulations 2020 (the Regulations) to complement the substantive provisions of the Act.
He said that the regulations were to also possibly address some gaps therein, which are within the competence of regulations to address.
The CAC chief said the regulations were published on the Commission’s website on Nov. 2, 2020 while inviting submissions from the general public.
“Submissions have been received from some groups and individuals
“The Commission is presently reviewing the submissions for further action(s) as may be necessary for effective regulation.
“We hope that at this point, operators would have conducted (or be conducting) gap-analyses to determine what actions are necessary on their parts to align their operations with the requirements of the Act,” he said.
Prof Koyinsola Ajayi, SAN, Managing Partner, Olaniwun Ajayi LP, said the Act would in a huge way positively influence business operations due to its provision of consideration of the right of stakeholders.
He lauded the introduction of more orderly and effective procedures for business rescue and resolution of insolvency.
“CAMA used to focus largely on the shareholders but it has now taken in those also important to the survival of a business environment such as directors, employees, customers and others.
“The provisions on insolvency are far reaching, deeper, and international, as it introduces the concept of administration on insolvency that helps work a company back to liquidity.
“The Act would also give the court a better grasp when dealing with issues that have to do with business.
“CAMA has been structured to make financing by companies cheaper and easier,” he said.