President Muhammadu Buhari has
signed Companies and Allied Matters (CAM) Bill 2020 into law.
The bill which became Companies
and Allied Matters Act (CAMA), 2020 is regarded as the most significant
business legislation in Nigeria since 1990.
The bill was passed by the Bukola
Saraki-led eight senate, but the president refused to assent to the bill,
asking to “preserve the powers of the Attorney-General of the Federation to
approve the registration of companies limited by guarantee” among other
provisions.
In November 2019, the president
asked the national assembly to effect some corrections to the bill, which led
to it passing second reading in February 2020, before the president signed on
Friday.
Femi Adeisna, special adviser to
the president on media and publicity, said “the president’s action on this
important piece of legislation, therefore, repealed and replaced the extant
Companies and Allied Matters Act, 1990, introducing after 30 years, several
corporate legal innovations geared toward enhancing ease of doing business in
the country”.
The Act ensures “filing fee
reductions and other reforms to make it easier and cheaper for small and
medium-sized enterprises to register and reform their businesses in Nigeria”.
It also “makes it possible to
establish a private company with only one (1) member or shareholder” — as
against the minimum of two people in the recent past.
A transparency clause in the CAMA
2020 also requires “the disclosure of persons with significant control of
companies in a register of beneficial owners to enhance corporate
accountability”.
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