Buhari signs amended Companies and Allied Bill into law
NEWS DIGEST – President Muhammadu Buhari, on Friday in Abuja, assented to the Companies and Allied Matters Bill, 2020, which was recently passed by the National Assembly.
President Buhari’s assent to the bill repealed and replaced the one hitherto in effect; Companies and Allied Matters Act, 1990.
The new law comes in 30 years after the previous one.
According to a statement issued by the Special Adviser to the President on Media and Publicity Mr Femi Adesina, the new law is coming with several corporate legal innovations geared toward enhancing ease of doing business in the country.
Among the newly introduced innovations to the law, according to the statement are the following: “Filing fee reductions and other reforms to make it easier and cheaper for small and medium-sized enterprises to register and reform their businesses in Nigeria;
“Allowing corporate promoters of companies to establish private companies with a single member or shareholder, and creating limited liability partnerships and limited partnerships to give investors and business people alternative forms of carrying out their business in an efficient and flexible way;
“Innovating processes and procedures to ease the operations of companies, such as introducing Statements of Compliance; replacing ‘authorised share capital’ with minimum share capital to reduce costs of incorporating companies; and providing for electronic filing, electronic share transfers, e-meetings as well as remote general meetings for private companies in response to the disruptions to close contact physical meetings due to the COVID-19 pandemic;
“Requiring the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency; and
“Enhancing the minority shareholder protection and engagement; introducing enhanced business rescue reforms for insolvent companies; and permitting the merger of Incorporated Trustees for associations that share similar aims and objectives,” the statement said.