Highlights of the Companies and Allied Matters Act 2020 (Series 2)

Posted on Aug 25, 2020

FREQUENTLY ASKED QUESTIONS

How soon must a public company deliver to the Commission a statutory report prepared in furtherance to a statutory meeting?

Within 14 days after sending copies of the statutory report to its members. The Repealed Act did not stipulate a timeline although it stated that the statutory report should be delivered to the Commission “forthwith” delivery of same to its members.

What is the time frame for conducting a Statutory General Meeting where a Member who wishes a resolution to be passed on a matter arising from the Statutory Report?

The Company can only hold the Statutory Meeting after the expiration of the 21-days’ notice given by the member of his intention to pass such a resolution.

Must all Companies hold Annual General Meeting?(“CAC”)?

A small company is a company that is (i) a private company (ii) with a turnover of not more than N120million (or such amounts as may be fixed by the Commission from time to time), (iii) a net assets value of not more than N60million (or such amounts as may be fixed by the Commission from time to time) (iv) none of its members are non-Nigerians (v) none of its members are a government, government corporation or agency and (vi) in the case of a company having share capital, the directors between themselves hold at least 51% of its equity capital.

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