Posted on Aug 20, 2020
What is the impact of the Companies and Allied Matters Act 2020 (CAMA or the Act) on company actions under the repealed Companies and Allied Matters Act Cap C20 Laws of the Federation of Nigeria 2004 (“Repealed Act”)?
All acts and decisions validly made under the Repealed Act remains valid and binding pursuant to Section 2(1) of the Interpretations Act. Also, the Companies Regulation 2012 remains extant to the extent that it is not in conflict with the Act by virtue of Section-4(2)(a) of the Interpretations Act.
When does the Act commence?
The Act doesn’t expressly provide a commencement date. Hence, the commencement date is the date the Act was signed into law by the President
Is there a change to the administrative structure of the Corporate Affairs Commission (“CAC”)?
Yes. The Act established the Governing Board of the Commission responsible for performing the functions of the CAC. The Act introduced changes to the members of the Board different from the composition of the CAC under the Repealed Act. The new introduction includes representatives of the Institute of Chartered Secretaries and Administrators of Nigeria, the Nigerian Association of Small and Medium Enterprises. The inclusion of representatives of the Nigerian Association of Small and Medium Enterprises is highly laudable in recognition of the contribution of Micro, Small and Medium enterprises to the Nigerian economy, including contributing about 49% of the national GDP for the last 5 years and 50% of industrial jobs.
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