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  • Business - Companies
  • Updated: August 08, 2020

President Buhari Passes New Company-Business Act After 30-Years

President Buhari Passes New Company-Business Act After 30-Ye

The Companies and Allied Matters Bill, 2020, has been passed by President Muhammadu Buhari on Friday, August 7, 2020. President Buhari assented to the amended bill which had remained unchanged for about 30 years. The new act was amended to complement the ease of doing business being pushed by the administration.

The National Assembly had only recently passed it for an executive signature. The new act replaced the Companies and Allied Matters Act, 1990, and includes "several corporate legal innovations geared toward enhancing ease of doing business in the country." a statement released by Special Adviser to the President on Media & Publicity, Femi Adesina, and seen by AllNews, disclosed.

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The New Act Introduced The Following;

(1). 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;

(2). Allowing corporate promoters of companies to establish private companies with a single member or shareholder, and creating limited liability partnerships and limited partnerships to give investors and business people alternative forms of carrying out their business in an efficient and flexible way;

(3). 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 providing 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 physical meetings due to the COVID-19 pandemic;

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(4). Requiring the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency; and

(5). Enhancing the minority shareholder protection and engagement; introducing enhanced business rescue reforms for insolvent companies; and permitting the merger of Incorporated Trustees for associations that share similar aims and objectives.

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