President Muhammadu Buhari has signed the Companies and Allied Matters Act (CAMA), 2020 which is regarded as the most significant business legislation in Nigeria since 1990 into law.
The bill had been passed by the 8th Senate led by Bukola Saraki for the President’s approval was refused, as Buhari asked preserve the powers of the Attorney-General of the Federation to approve the registration of companies limited by guarantee among other provisions.
The President asked that the 9th National Assembly effect some corrections to the bill, which led to it passing second reading in February 2020, before the president signed on Friday.
Announcing the sign, the Special to the President on Media and Publicity Femi Adesina noted that the President’s action on the legislation repeals and replaces the extant Companies and Allied Matters Act, 1990, introducing after 30 years, several corporate legal innovations geared toward enhancing ease of doing business in the country.
“The Act ensures 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.
It also makes it possible to establish a private company with only one (1) member or shareholder — as against the minimum of two people in the recent past.
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A transparency clause in the CAMA 2020 also requires the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability.
Section 18(2) of the new Companies and Allied Matters Act (CAMA), signed into law by President Muhammadu Buhari today, states that it’s now possible to establish a private company with only one (1) member or shareholder. A new major step taken!
— Bashir Ahmad (@BashirAhmaad) August 7, 2020