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15 New Provisions in The Companies and Allied Matters Act (CAMA) 2020 That Promote Ease of Doing Business
15 New Provisions in The Companies and Allied Matters Act (CAMA) 2020 That Promote Ease of Doing Business
Many believe the reform will tone down regulatory hurdles and ease the business
environment to stimulate growth, claiming business in the country has been
simplified and investors will have more confidence doing business in Nigeria.”
The new CAMA 2020 has other reforms to make it easier and cheaper for small
and medium-size enterprises. The resultant effect will be that a pattern of hitherto
unparalleled growth and development has emerged on the corporate horizon
with Nigerians bracing up to the task.
Some of the new provision as amended in the acts include:
1. The new CAMA provides for remote or virtual general meetings: provided
that such meetings are conducted in accordance with the Articles of Association of
the Company, (which contains the rules and regulations guiding the internal
management of a company). This will facilitate participation from any location at
minimal costs. This is especially relevant today given the disruption caused by the
COVID-19 pandemic to operations around the world.
2. Provision for electronic filing: electronic share transfer and e-meetings for
private companies. According to S.861, the new CAMA provides that certified true
copies (CTC) of electronically filed documents are admissible in evidence with
equal validity with the original documents. S.176 (1) also provides that instruments
of transfer of shares shall include electronic instruments of transfer.
3. Enhancement of minority shareholder protection and engagement: S.265
(6) restricts firms from appointing directors to hold the office of the chairman and
chief executive officer of a private company.
15. The new CAMA also requires the disclosure of persons with significant control of
companies in a register of beneficial owners to enhance corporate accountability and
transparency. Therefore, if a company is seen as a puppet of a person, the veil of
incorporation which keeps the members and the company as separate entities could
be lifted on grounds of equity.