AFTER 30 YEARS, PRESIDENT BUHARI SIGNED AMENDED COMPANIES AND ALLIED MATTERS BILL TODAY.
The Companies and Allied Matters Bill, 2020 repeals and replaces the extant Companies and Allied Matters Act, 1990 with innovations geared toward enhancing the ease of doing business.
This new law repeals & replaces the 30yr old Company and Allied Matters Act, 1990, which has become moribund & a clog in the wheel of progress for new businesses in this age.
1. E-registration: Companies can now register electronically
if you are tech savvy or has gone through the cumbersome CAC process will appreciate this. It’s a unfortunate that we couldn’t do this in a tech world
2. Single Membership: minimum number of people that can set-up a private company has reduced to 1 from 2. This helps micro businesses
Statutory audit of accounts is now optional for Incorporated companies that are yet to commence operations or with turnover of less than Ten million naira & balance sheet size of not more than five million naira for a financial year. This exempts banks & insurance companies or as prescribed by CAC.
AGMs are now optional for companies with one shareholder
11. Electronic AGMs/Board meetings are now legally allowed to align with tech evolution
12. Companies can now buy back their own shares There are others, but these are some of the provisions that directly affect MSMEs
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