Friday, 7th August 2020, history was made with the signing into law of the Companies and Allied Matters Bill 2020 (“CAMA 2020”) by President Muhammadu Buhari. The new law comes into effect replacing the now repealed 30-year-old CAMA 1990, which has been a cog in the wheel of ease of doing business in Nigeria.
The CAMA 2020 is unarguably Nigeria’s most significant business legislation in recent time as it introduces new provisions that promote ease of doing business, provides SMEs with registration options for their business, and addresses regulatory problems associated with the erstwhile legislation.
Below are some of the crucial innovations of the CAMA 2020:
- Companies can now be registered with only a single shareholder.
- Limited liability partnerships and limited partnerships entities are now recognized and can be registered.
- Authorized share capital is now replaced with a minimum share capital.
- Virtual annual general meetings for all companies are now permissible.
- Private companies are no longer mandated to appoint a company secretary.
- Electronic registration of companies and filing of documents are now recognized.
- Small companies are no longer mandated to appoint auditors for their financial records.
- Merger of Incorporated Trustees for associations that share similar aims and objectives.
- Companies limited by guarantee can now register their memorandum of association without the consent of the Attorney General of the Federation.
For enquiries on the above or the new CAMA Act, 2020 in general, kindly contact
Mr Ebuka Ibenegbu, Partner and head of our Corporate and SMEs practice