Corporate Affairs Commission to Remove 100,000 Companies from Registry Over Non-Compliance

In a recent training session on ‘Use of the Beneficial Ownership Register’ held in Lagos, the Corporate Affairs Commission (CAC) made a significant announcement regarding its database. The Registrar-General and Chief Executive Officer, Alhaji Garba Abubakar, revealed the commission’s plan to remove 100,000 registered companies from its records. The reason behind this action is their failure to file annual returns over the past decade.

Abubakar emphasized that the CAC would follow the prescribed procedure before striking off these companies. The affected firms will receive notices of their impending removal, as mandated by section 692 of the CAMA, 2020. However, he assured that companies could be relisted after settling their outstanding debts and obtaining a court order as per the law. To avoid facing such consequences, Abubakar urged companies to ensure timely payment of their annual returns.

The training also highlighted the significance of Africa’s first Beneficial Ownership Register, which was developed by the CAC with support from the World Bank. Abubakar stressed that this register would play a crucial role in combating corruption, money laundering, and terrorism financing. He encouraged various stakeholders, including investigating agencies, legal practitioners, journalists, and civil society organizations, to utilize the BOR to fulfill their responsibilities effectively.

Dr. Adeyeye Adefulu, the Chairman of the Nigerian Bar Association Section on Business Law, commended the CAC for achieving another vital milestone and assured sustained cooperation. He urged members to utilize the knowledge gained during the training for the betterment of the Nigerian economy. Aminu Gwadabe, the President of the Association of Bureau De Change Operators of Nigeria, emphasized the importance of the BOR in the fight against money laundering and terrorism financing. He urged professionals to exercise due diligence while dealing with clients to combat these threats effectively.