The Ag. Registrar-General of the Corporate Affairs Commission, Lady Azuka Azinge has emphasized the imperatives of a Presidential assent to the Companies and Allied Matters (CAM) Bill.
Lady Azinge stated this while briefing newsmen on the status of the amendment of the Companies and Allied Matters Bill, 2019.
The Ag. Registrar-General stressed that the amendments were in line with President Muhammadu Buhari administrations reform agenda to create an enabling environment for businesses to thrive.
She disclosed that the CAM Bill had been passed by the 8th Assembly and awaits Presidential Assent.
According to her, the major thrust of the CAM Bill includes: To ease starting and growing business in Nigeria by: Abolishing the requirement for a company to have an authorised share capital; Enabling a single person to form a private company; Significantly updating the rules on insolvency; Introducing, for the first time, a business rescue process; Introducing close-out netting provisions; and the concept of limited liability partnerships.
To ensure more appropriate regulation for Micro, Small and Medium Scale Enterprises by: Making it optional for smaller companies to have a company Secretary; Making it easier for smaller companies to comply with accounting requirements; Making it optional for one-man and small companies to hold an annual general meeting; Introducing separate model articles of association for private companies that will contain the minimum key rules on the internal workings of the company.
To enhance transparency and shareholder engagement by: Increasing transparency and disclosures on beneficial ownership to determine persons with power to exert significant level of influence or control over the decisions and actions of a company.
To align regulatory framework with International best practices for competitiveness and thus enhance the efficiency of the regulatory process by: Introducing measures to make company law better fitted to modern business realities, improve the business environment and performance across the economy as well as reduce direct compliance costs for businesses.
In the context of Global economy, to make Nigeria an investment destination of choice by attracting, retaining and growing investments: Introduces orderly and more effective procedures for business rescue and resolving insolvency: Administration, Company Voluntary Arrangement and Netting.
According to Lady Azinge, when passed into law, the Bill will open up the business space, enhance the development of Micro, Small and Medium Enterprises (MSMEs), create employment, and generate wealth for rapid economic growth consistent with the Economic Recovery and Growth Plan (ERGP) of the present administration.