Why CAC Plans To Delist 100,000 Companies From Database

The Corporate Affairs Commission, CAC recently announced plans to delist 100,000 registered companies from its database.

Speaking during a training on ‘Use of the beneficial ownership register’, in Lagos, the Registrar-General and Chief Executive Officer, CAC, Alhaji Garba Abubakar said, “CAC steps up enforcement of 100,000 companies to go off its register for failure to file an annual return.”

According to him, 100,000 companies that failed to file annual returns in the last 10 years were due to be struck off by the Corporate Affairs Commission.

Abubakar also noted that CAC would send notice of striking off to the affected companies before embarking on the action as enshrined in section 692 of the CAMA, 2020.

What delisted companies can do

Abubakar also explained that the companies can be relisted after payment of their outstanding debts and order of a court, as provided by the law.

He further advised these businesses to ensure timely payment of their annual returns to avoid being struck off.

CAC’s role in curbing corruption

The registrar general also noted that Africa’s first Beneficial Ownership Register, built by the CAC with the support and assistance of the World Bank, would go a long way in curbing corruption, money laundering, and terrorism financing.

Abubakar urged stakeholders, especially, investigating agencies, legal practitioners, journalists, and civil society organisations, to utilise the BOR in discharging their responsibilities.

Also speaking, the Chairman of the Nigerian Bar Association Section on Business Law, NBA-SBL, Dr Adeyeye Adefulu, applauded the CAC for recording another important milestone in its history.

Pledging that NBA-SBL would sustain its existing cordial relationship with the commission, Adefulu charged members to make good use of the knowledge acquired at the training for the benefit of the Nigerian economy.