CAC Begins Process of Removing Companies From Its Register
The Corporate Affairs Commission (CAC) says it has begun the process of removing companies from its register.
About 94,581 firms are being prepared for removal, according to a public notice on the list of affected organisations obtained from the commission’s website.
The commission said the striking off is due to the noncompliance with the provisions of the companies and allied matters act of 2020.
It urged companies to check its website for affected companies.”
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The commission disclosed this plan on its verified Twitter page on Monday. This also follows an earlier warning issued by its Registrar General, Garba Abubakar, last week. He had referred to the CAC’s intention to scrap the names of erring businesses from its list while addressing various organizations in Kano on Thursday on the use of the Beneficial Ownership Register.
According to Garba Abubakar, the affected companies are being delisted because they failed to file annual returns in the last 10 years. In its tweet, the CAC said that its line of action was “pursuant to Section 692 (3) and (4) of the Companies and Allied Matters Act 2020.” The law requires companies registered with the CAC to file returns yearly. This, among other things, confirms that they remain active entities.
Companies whose names are removed from the CAC database will cease to be recognized as duly registered with the commission. They will also be legally prohibited from carrying out business unless they obtain a restoration order from the Federal High Court. Furthermore, if they are not relisted within 10 years, their assets will be forfeited to the government.
