The Corporate Affairs Commission (CAC) has announced its intention to delist 100,000 registered companies from its database due to their failure to file annual returns over the last decade.
The decision was disclosed by the Registrar-General and Chief Executive Officer of CAC, Alhaji Garba Abubakar, during a training session on the ‘Use of the beneficial ownership register’ in Lagos.
Abubakar stated that the CAC will step up enforcement measures to remove these non-compliant companies from its register.
According to Section 692 of the CAMA, 2020, the commission is obligated to send notice of striking off to the affected companies before proceeding with the action.
However, he clarified that these companies have the opportunity to be relisted after settling their outstanding debts and obtaining a court order as mandated by the law.
The Registrar-General urged companies to prioritize timely payment of their annual returns to avoid being struck off.
The failure to comply with these regulatory requirements not only results in the removal from the database but also hampers the smooth functioning of the commission.
In a separate topic during the training, Abubakar highlighted the significance of Africa’s first Beneficial Ownership Register (BOR), developed by the CAC with support from the World Bank.
He emphasized that the BOR will play a crucial role in combating corruption, money laundering, and terrorism financing in the region.
Abubakar encouraged various stakeholders, including investigative agencies, legal practitioners, journalists, and civil society organizations, to make effective use of the BOR in fulfilling their respective responsibilities.
Responding to the development, Dr. Adeyeye Adefulu, Chairman of the Nigerian Bar Association Section on Business Law (NBA-SBL), praised the CAC for achieving this milestone and assured continued collaboration between NBA-SBL and the commission.
He also encouraged members to leverage the knowledge gained from the training for the betterment of the Nigerian economy.
Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria, also emphasized the importance of the BOR in the ongoing fight against money laundering and terrorism financing.
He urged professionals to exercise due diligence while dealing with their clients to ensure compliance with anti-money laundering and counter-terrorism financing measures.
The move by the CAC to delist non-compliant companies underscores the importance of adhering to regulatory requirements and maintaining transparency in corporate practices.
As the commission proceeds with its enforcement measures, affected companies are urged to take prompt action to avoid being struck off from the CAC’s database
