The bill will replace the extant Companies and Allied Matters Act, 1990.
President Muhammadu Buhari has signed into law the Companies and Allied Matters Bill, 2020.
The bill will replace the extant Companies and Allied Matters Act, 1990.
Femi Adesina, Special Adviser to the President on Media and Publicity, said the law will see to the reduction of filing fee and other reforms to make it easier and cheaper for small and medium-sized enterprises to register and reform their businesses in Nigeria.
He said, "The law will allow corporate promoters of companies to establish private companies with a single member or shareholder, and creating limited liability partnerships and limited partnerships to give investors and business people alternative forms of carrying out their business in an efficient and flexible way.
“Innovating processes and procedures to ease the operations of companies, such as introducing statements of compliance; replacing authorised share capital with minimum share capital to reduce costs of incorporating companies; and providing for electronic filing, electronic share transfers, e-meetings as well as remote general meetings for private companies in response to the disruptions to close contact physical meetings due to the COVID-19 pandemic.
“Requiring the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency.”
Adesina added that the law will enhance the minority shareholder protection and engagement as well as introducing enhanced business rescue reforms for insolvent companies; and permitting the merger of incorporated trustees for associations that share similar aims and objectives.