On Friday, 7th August 2020, President Muhammadu Buhari assented to the Companies and Allied Matters Bill passed by the National Assembly. The Companies and Allied Matters Act, 2020 (the "Act") repealed the Companies and Allied Matters Act, Cap. C20 LFN 2004, and contains major amendments that have brought the Act in line with global best practices.
Below highlights the major provisions introduced by the Act:
It is important to state that most of the monetary fines contained in the previous CAMA have been amended in the new Act to reflect today's realities. In addition, every director and or officer of a company may now be liable for non-compliance with certain provisions of the Act.
This places and extra duty on the directors to ensure that the company complies with the provisions of the Act as they will be held liable whether or not such director or officer is actually in default of such provisions.
Originally published 21 August, 2020
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