The Nigerian government will implement the new and controversial Companies and Allied Matters Act (CAMA) on January 1, 2021, the Corporate Affairs Commission (CAC) confirmed on Monday, Nov. 23.
The new law will promote the ease of doing business in Nigeria which would be a relief for growing startups and young entrepreneurs who usually go through unnecessary bottlenecks during the business registration process.
In section 18 (2) of the new CAMA, a private company can now be registered with only one (1) member or shareholder unlike what the repealed law required – a new business in Nigeria needed to provide at least two or more people as co-owners of the company before it could be registered. This forced many new businesses into forging unnecessary partnerships.
Section 27 of the new CAMA also replaces ‘Authorized Share Capital’ with ‘Minimum Share Capital’. This means that the promoter(s) of a business is not required to pay for or allocate shares that are not needed at the specific time of incorporation.
“The Corporate Affairs Commission has officially taken delivery of a copy of the Gazetted CAMA, 2020 from the Clerk of the National Assembly on Thursday 19th November,2020 and is putting machinery in place to commence full implementation by 1st January, 2021”, CAC wrote on its Twitter page on Monday, Nov. 23.
The Corporate Affairs Commission has officially taken delivery of a copy of the Gazetted CAMA, 2020 from the Clerk of the National Assembly on Thursday 19th November,2020 and is putting machinery in place to commence full implementation by 1st January,2021.
— Corporate Affairs Commission (@cacnigeria1) November 23, 2020
However, the new CAMA does not sit well with the Christian community which believes it was targeted to undermine the Church. The law requires that religious bodies and charity organizations will be regulated by the Registrar-General of the CAC and a minister.
According to the law, the CAC now has the authority to suspend the trustees of an association or a religious body and appoint an interim manager or managers to coordinate its affairs if there is evidence of any misconduct, mismanagement, or fraud.
Many church leaders in the country including the founder of Living Faith Church Worldwide, David Oyedepo, had accused the government of trying to stifle the Church out of jealousy.
The CAMA 2020 replaces and repeals the extant Companies and Allied Matters Act, 1990. It was signed into law by President Muhammadu Buhari in August.
Download the CAMA 2020 document here.
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