Highlights of the Companies and Allied Matters Act 2020 (Series 3)

Posted on Sept 05, 2020

FREQUENTLY ASKED QUESTIONS

Must all Companies display their Audited Account on their Website?

No. Only public companies are mandated to display their audited accounts on their website.

Are Companies now required to Keep Electronic Copies of Registers?

Yes. In addition to hard copies, companies are required to keep electronic copies or registers of any document or record it is obliged to keep or maintain under the Act. The Act uses the discretionary word “may”, hence, keeping electronic copies is not mandatory.

What is a Small Company?

A company will be a small company if in a year and the preceding year: (i) it is a private company (ii) its turnover is not more than N120,000,000 or such amount as may be fixed by the Commission from time to time (iii) its net assets value is not more than N60,000,000 or such amount as may be fixed by the Commission from time to time (iv) none of its members is an alien (v) none of its members is a government, government corporation or agency or its nominee and (vi) the directors between themselves hold at least 51% of its equity share capital.

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