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CAMA 2020: 7 Great News in Revised Nigerian Business Laws

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News

CAMA 2020: 7 Great News in Revised Nigerian Business Laws

 

CAMA 2020: laws that regulate businesses in Nigeria have been revised first time in 30 years and signed by President Buhari. 

TheConscienceNG reports that the reformed Bill, CAMA 2020, signed on August 7 now caters for and recognises modern and digital business realities, requirements and approaches, nullifying old and archaic rules that have guided business incorporation, operations and corporate governance rules for 30 years in Nigeria.

The Companies and Allied Maters Act, 2020 (“CAMA 2020”), which repeals and replaces the Companies and Allied Matters Act, 1990 (the “Repealed Act”) provides a robust framework for reforming identified onerous legal, regulatory and administrative bottlenecks which, for three decades, have made doing business in Nigeria substantially difficult (particularly for Micro, Small and Medium Enterprises (MSMEs)), and impeded investments into Nigeria.

READ MORE: Fraud: EFCC Investigates Two Lebanese Over $890,000

TheConscienceNG gathers 7 great news in the Revised CAMA 2020 Act, as follows:

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.

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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.

READ MORE: NCF Begins Free Online Summer Camp for Pupils, Teenagers

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.

TheConscience

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