08 August 2020 by James Itodo
The Senate has commended President Muhammadu Buhari for assenting to the Companies and Allied Matters Bill passed by the National Assembly.
A statement by the Senate Spokesman, Ajibola Basiru in Abuja, says President Buhari’s assent to the bill has completed the final stage in the legislative process for formal re-enactment of the Act repealing and replacing the CAMA law which has been in use for over 30 years.
According to the statement the President’s assent is also a clear demonstration of the mutual cooperation between the Executive arm of Government and the National Assembly towards interventions aimed at improving the nation’s economy.
It stresses that the amendment as passed by the Senate and House of Representatives sought to strengthen the legal framework for the incorporation of companies which had become obsolete, as well as address several corporate legal innovations geared towards enhancing ease of doing business in Nigeria.
The statement adds that the amended CAMA law, specifically accommodates provisions which insist on the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency.
“It is not in doubt that the provisions of the repealed Act had become very obsolete and therefore could not effectively address challenges being faced by companies and incorporated trustees such as business rescue for insolvent companies and the merger of Incorporated Trustees for associations that share similar aims and objectives.
“It is also gratifying to note that the new Act provides for innovating processes and procedures to ease the operations of companies, such as introducing Statements of Compliance; replacing “authorised share capital” with minimum share capital to reduce costs of incorporating companies; and provide for electronic filing, electronic share transfers, e-meetings as well as remote general meetings for private companies in response to the disruptions to close contact of physical meetings due to the COVID-19 pandemic.
“Others include the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency,” Basiru said.
The statement expresses the willingness of the Upper Chamber to continue in line with its constitutional mandate to make laws for the ‘peace, order and good governance’ of the Federation and accord the executive the necessary legislative cooperation that will promote and sustain the well-being and security of the citizenry as well as the prosperity of Nigeria.