The new Companies and Allied Matters Act (CAMA) recently signed by the President is, essentially, aimed at supporting the ease of doing business reforms and not to witch hunt any organization as many, especially, church organizations, were inclined to believe, the Registrar-General, Corporate Affairs Commission, Alhaji Garba Abubakar, has clarified.
He made the clarification yesterday, during a retreat organised by the Commerce and Industry Correspondents Association of Nigeria, with the theme “Covid-19 Pandemic and New Reforms Initiatives by CAC.”
Abubakar said under the former law, the services of a legal practitioner are needed to register a business which, he said, has invariably, affected the ease of doing business, on account of adding extra cost to the basic cost of registering a business, adding that under the new law, one may not require a legal practitioner to get any statutory requirement.
He stressed that, under the old law, the required capacity to form a company was two persons, adding that under the new law, only one person can register a company once he meets the criteria of 18 years, of sound mind, and not bankrupt. This, he said, is a much more achievable requirement for those who have brilliant ideas to blossom, thus removing the old cumbersomeness.
Particularly, he explained that the new provision would help individuals that have initiatives to register their companies without having cause to bring in people with other motives into such business.
In terms of classification of small companies, he said under the former law, all companies must have Company Secretaries and Auditors, noting, however, that under the new law, this provision has been relaxed as small companies do not have to engage Company Secretaries or Auditors, thus saving cost.
Reacting to religious bodies, particularly Churches’ belief that the new CAMA was targeted at them, the CAC boss stated otherwise, noting that the new law which now mandates the Associations which churches fall under, to submit annual accounts to the CAC, is just relative to legal regulatory framework.
According to him, the legal framework applies to all organisations registered as Incorporated Trustees whether religious or social clubs.
He said the law provides the minimum standards on how these organisations should be governed, adding that once an association submits itself for regulatory oversight through registration, then it cannot now be asking for exemption.
Abubakar said some of these Associations are run from donations from foreign bodies and those providing these funds would want to know how these funds are disbursed in line with global standards.
- Pix: Alhaji Garba Abubakar, RG, CAC