The Senate at its plenary session of Tuesday, 15 May 2018, passed the Companies and Allied Matters Act (CAMA), 2004 (Repeal and Re-enactment) Bill, 2018 (SBs 355 and 384). The Bill seeks to:
- Make provisions for the incorporation of companies, registration of business names together with incorporation of trustees of certain communities, bodies and association; and
- Establish the State Corporate Affairs Commissions for registration of business names.
Presenting the report on the Bill, Sen. Yusuf A. Yusuf (APC: Taraba), a Member of the Committee on Trade and Investment mentioned that the Bills sponsored by Sen. Ovie Omo-Agege (APC: Delta) and Sen. Fatima Raji-Rasaki (PDP: Ekiti) respectively, aimed to amend the Companies and Allied Matters Act to address lapses encountered in the course of implementing the extant law. Hence, the Committee agreed to the harmonization of the Bills
Sen. Yusuf stated that the Committee had received memoranda and conducted a public hearing on the bill in order to avail stakeholders and the general public the opportunity to state their views on the proposed legislation including the engagement of a Technical Advisory Committee to ensure a more elaborate deliberation. He informed lawmakers that views expressed at the public hearing were in support of the Bill.
In his submissions, he noted the highlights of the Bill to include:
- A provision that makes it possible for a single person to establish a private company.
- A provision, which allows for Limited Liability Partnership.
- A provision, which allows Companies to provide financial assistance to its shareholders.
- A provision, which allows Companies to reduce its Share Capital.
- A provision, which focuses on resolving insolvency through the inclusion of an insolvency framework.
- A provision, which makes the appointment of a Company Secretary optional for small companies and those with a single shareholder.
Lastly, he noted that the bill, if passed, will address deficiencies in the Principal Act and create an all-inclusive framework for the ease of doing business in Nigeria as well as the registration and regulation of businesses and allied matters.
However, during the clause -by-clause consideration of the Bill, the lawmakers had rejected Clauses 132 -137 and 184 which focuses on Financial Assistance and Reduction of Share Capital respectively when put to vote by the Senate President, Sen. Bukola Saraki (APC: Kwara).
Click here to view an Executive Summary of the Committee’s report
