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For failing to file in annual reports and other subtle offences, the Corporate Affairs Commission, CAC says it has delisted over 38,000 companies from operation in the country.
This was revealed on Tuesday by the Registrar-General of the Commission, Mr. Bello Mahmud in an interview with newsmen in Abuja.
According to a report by The Punch, Bello said the delisting of the companies have been gazetted by the commission, adding that only the court can give an order for the companies to be readmitted into the register of the commission.
By delisting of these companies by the CAC, it implies that such companies are no longer registered entities in Nigeria and as such not recognised by law.
In Bello’s words: “The laws says that if the commission has reasonable cause that the company is not carrying on business while in operation, then it has to enquire from that company and if no response is received within three months, the commission can proceed to strike off the name of the registered company.
“We have just gazetted a little above 38,000 companies and those companies have been struck off from the register.
“But by striking off, it doesnt mean the companies have been dissolved. The companies have been more or less suspended and they cannot go back to business unless they obtain an order of court to re-list. The law gives them a window of 20 years within which they can apply for re-list.”
The Registrar General noted that the CAC has carried out an amendment of the Companies and Allied Matters Act which is expected to strengthen the regulatory and enforcement powers of the commission.
He lamented that the CAMA which established the CAC had been in operation for over 20 years, noting that the amendment was needed to enable the commission keep pace with changing business practice.
He gave some of the key areas that are being amended to include the right of one person to form Private Limited Liability Company; provision for business rescue and recovery proceedings that will give temporary moratorium to financially distressed companies to adopt recovery measures under closed regulatory supervision.