Highlights of the Companies and Allied Matters Act 2020

On Friday, 7th August 2020, President Muhammadu Buhari assented to the Companies and
Allied Matters Bill passed by the National Assembly. The Companies and Allied Matters Act,
2020 (the “Act”) repealed the Companies and Allied Matters Act, Cap. C20 LFN 2004, and
contains major amendments that have brought the Act in line with global best practices.

Below highlights the major provisions introduced by the Act:

S/NNotable
Sections
Highlights
1Single Member
Companies -
Section 18(2)
  • The Act now permits the incorporation
    of a private company with one (1)
    shareholder.
2Restriction
on the Shares
of Private
Companies -
Section 22
  • Any restriction on the transfer of
    shares in a company is now subject
    to the provisions of the company’s
    articles.
3Company
Limited by
Guarantee -
Section 26
  • The Corporate Affairs Commission
    (“CAC”) can approve the registration
    of a company limited by guarantee
    where the promoters have
    furnished the Attorney General of
    the Federation with all the valid
    documents required and after thirty
    (30) days, no decision has been
    made by the Attorney General.
    The promoters will have to place
    an advertisement in three (3)
    national daily newspapers and invite
    objections if any to the incorporation
    of the company. Objections shall
    be forwarded to the Commission
    within 28 days of the date of the last
    publications.


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