CAMA 2020 reduces regulatory burden on small businesses- CAC

Admin 12-Oct-2020 Nigeria_News, Business

By Olayemi Esan

The Registrar-General, Corporate Affairs Commission (CAC), Alhaji Garba Abubakar, says the Companies and Allied Matters Act, 2020 (CAMA 2020)  will reduce the burden of starting and running small businesses in Nigeria.

Abubakar made this known in an interview with Newsmen on Monday in Abuja.

He said that the provisions of the new CAMA would stimulate economic growth, attract investment and promote the Ease of Doing Business campaign of the Federal Government, especially for Micro Small and Medium Enterprises (MSMEs).

According to him, CAMA 2020 provides for individuals to register their businesses with the CAC without going through a lawyer or other stipulated professionals.

He said that under the new act, it was possible for one person to form and incorporate a private company, unlike before when sole membership of a company was impossible.

Abubakar said that another significant benefit for small businesses under CAMA 2020 was the increase in the threshold for qualification as a small company.

The Registrar- General said CAMA now recognised  the authentication of documents by the electronic signature of a director, secretary, or other authorised officials  of the company.

He said that the act also endorsed the electronic transfer of shares and private companies might also hold their general meetings electronically, however, this must be permitted by the articles of the company.

He said that personal notice and a notice of meetings might also be sent by e-mail, and business operations conducted remotely, and electronically endorsed documents would be fully recognised by the Corporate Affairs Commission (CAC).

“These provisions are geared toward easing business processes and eliminating challenges associated with strict application of the old CAMA,” he said.

Abuja City Journal recalls that President Muhammadu Buhari, on Aug. 7, signed into law the CAMA 2020, which repeals and replaces the Companies and Allied Matters Act, 1990.

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