CAC Set to Delist 100,000 Companies for Non-Compliance - The Top Society

CAC Set to Delist 100,000 Companies for Non-Compliance

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The Corporate Affairs Commission (CAC) is gearing up to remove over 91,000 companies from its register due to their failure to file annual returns, as disclosed in a list published on its official website. This figure is slightly reduced from the 94,581 initially reported in August, but still falls short of the initial target of 100,000 companies set by the CAC.

In an update on December 5, the CAC stated, “The list of Companies that have failed to comply with the provisions of the Companies and Allied Matters Act 2020, to file up to date annual returns is now ready for publication in accordance with the provisions of Section 692 of the Act.”

Note that in July, the Registrar-General and Chief Executive Officer of CAC, Garba Abubakar, had announced a stringent enforcement measure to delete 100,000 registered companies for their non-compliance with filing annual returns. This decision, rooted in Section 692 of the Companies and Allied Matters Act (CAMA) 2020, was aimed at ensuring regulatory adherence.

“CAC steps up enforcement of 100,000 companies to go off its register for failure to file an annual return,” Garba said.

CAC

Companies that have submitted complete annual returns in response to the previous publication are advised to verify their removal from the impending delisting. The updated list is accessible on the Commission’s official website.

For companies erroneously included in the list despite filing complete annual returns, the CAC has provided a 30-day window to rectify the situation. Affected entities are instructed to send evidence of filing to compliance@cac.gov.ng.

The Commission emphasized the legal implications, stating that any company struck off the register is prohibited from conducting business unless its name is restored through an order of the Federal High Court. It also clarified that the removal from the register doesn’t absolve the company’s directors from liabilities specified in the Act.

“The General Public should note further that the striking off of the name of a Company from the Register of Companies is without prejudice to the powers of the Commission to enforce any liability arising under the Act against the directors of the struck off Company,” the statement read.

Related: OPay Denies Unauthorized Account Creation Allegations

As the CAC proceeds with this delisting exercise, it signals a commitment to maintaining the integrity of its registry and upholding compliance with statutory obligations among registered entities. Affected companies are urged to act promptly to avoid potential legal consequences.

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