The Corporate Affairs Commission (CAC) in Nigeria has announced its plans to remove 100,000 registered companies from its database due to their failure to file annual returns.
The Registrar-General and Chief Executive Officer of CAC, Alhaji Garba Abubakar, revealed this decision during a training session on the ‘Use of the beneficial ownership register’ held in Lagos.
He explained that these 100,000 companies had not filed their annual returns for the past decade, making them eligible for striking off as per section 692 of the CAMA, 2020.
However, Abubakar reassured that the commission would first send notice to the affected companies before taking action, and they could be reinstated upon settling their outstanding debts and obtaining a court order, as allowed by the law.
He urged companies to ensure timely payment of their annual returns to avoid being delisted.
The CAC’s implementation of Africa’s first Beneficial Ownership Register (BOR), developed with the support of the World Bank, was also emphasized during the training.
The registrar general asserted that the BOR would play a crucial role in combating corruption, money laundering, and terrorism financing.
Stakeholders, including investigating agencies, legal practitioners, journalists, and civil society organizations, were encouraged to utilize the BOR in fulfilling their respective responsibilities.
The Chairman of the Nigerian Bar Association Section on Business Law (NBA-SBL), Dr. Adeyeye Adefulu, lauded CAC for achieving this milestone and pledged the NBA-SBL’s continued cooperation with the commission.
The President of the Association of Bureau De Change Operators of Nigeria, Aminu Gwadabe, stressed the significance of the BOR in the fight against money laundering and terrorism financing and urged professionals to exercise due diligence when dealing with clients to curb such practices.