President Buhari on Friday, 7th of August 2020 assented to the Companies and Allied Matters Bill, 2020. According to the history of country, this is the first reform of CAMA since it was first introduced 30 years ago.
Some of the changes that the revised Bill introduces include the following:
The revised Act allows single member/shareholder companies to be incorporated in Nigeria - before now the minimum number of shareholders was two (2). Now one person can incorporate.
The new CAMA makes it easier and cheaper for small and medium-sized enterprises to register in Nigeria, by reducing filing fees.
The new CAMA makes Provisions for electronic filing, electronic share transfer and e-meetings for private companies. Certified True Copies of electronically-filed documents are now admissible in court; possessing equal validity with the original documents.
The new CAMA allows for the creation of “limited liability partnerships” (LLP) and “limited partnerships” (LP) - which combine the tax benefits of a partnership with the greater liability protection of the owners of a private company
The new CAMA enhances minority shareholder protection, by prohibiting a person from simultaneously holding the positions of Chairman and CEO of a private company.
With the new CAMA, Procuring a common seal is no longer a mandatory requirement for companies, in line with international best practice.
With the new CAMA, “Company Secretary” is now optional for private companies.
With the new CAMA, Law Students have their work cut out LMAO. You have to relearn a couple of things #RevisedCAMA2020