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2020 (the “Act”) repealed the Companies and Allied Matters Act, Cap.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/N | Notable
Sections | Highlights |
| 1 | Single Member
Companies -
Section 18(2) | - The Act now permits the incorporation
of a private company with one (1)
shareholder.
|
| 2 | Restriction
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.
|
| 3 | Company
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.
|
