THE Senate has welcomed the assent to the repealed and re-enacted Companies and Allied Matters Act (CAMA) by President Muhammadu Buhari.
In a statement on Saturday, spokesman of the Senate, Ajibola Basiru (APC Osun), said the president’s assent of the CAMA bill repealed the 30-year-old legislation and completed the final stage for the enactment of the Act.
He said: “The amendment as passed by the Senate and House of Representatives was to strengthen the legal framework for the incorporation of companies, limited liability partnerships, limited partnerships, registration of business names, incorporation of trustees of certain communities, bodies, associations.
“It is to also address incidental matters, several corporate legal innovations, geared toward enhancing ease of doing business in Nigeria.
“It is not in doubt that the provisions of the repealed Act had become very obsolete.
“It therefore could not effectively address challenges being faced by companies and incorporated trustees such as business rescue for insolvent companies and the merger of Incorporated Trustees for associations that share similar aims and objectives.”
Basiru said it was gratifying that the new Act provides for innovative processes and procedures to ease the operations of companies.
He listed such innovations to include introducion of statements of compliance, replacing authorised share capital with minimum share capital to reduce costs of incorporating companies.
Others are providing for electronic filing, electronic share transfers, e-meetings, remote general meetings for private companies in response to the disruptions to close contact physical meetings due to the COVID-19 pandemic.
Others, according to him, are the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency.
Besides CAMA, he said that Senate had demonstrated commitment to interventions to reposition the economy, particularly to cushion the disruptions occasioned by COVID-19.
Basiru added that the Senate would also continue to accord the executive necessary legislative cooperation that would promote and sustain the wellbeing and security of the citizenry and prosperity of Nigeria.(NAN)