CAC: Companies can use common seals but it is no longer required

Garba Abubakar 1

The Corporate Affairs Commission announced today that companies can use common seals as an option, instead of requiring them to do so.

This is part of the legislation under CAMA 2020, the new Companies and Allied Matters Act.

According to Mr. Rasheed Maha, Head of Media at CAC, this was stated by Alhaji Garba Abubakar Registrar General of CAC. He made the announcement after declaring a Customer’s Stakeholders Forum.

Abubakar, represented by Abdulhakeem Mohammed the Director Compliance of CAC, listed a number of reform initiatives undertaken by the commission under CAMA 2020.

NAN reported that the CAC boss claimed that one of the key features of the new law was the exemption of private companies from the requirement to nominate a company secretary pursuant to Section 330.

Abubakar mentioned that electronic signatures are now available, which allows one person to register a private business. Abubakar also stated that Section 849 permits incorporated trustees to merge with others who have similar goals.

The Registrar-General stated that private companies now have N100,000 in minimum capital and public liability companies 2 million. Small businesses and individuals are now allowed to hold statutory or annual general meetings abroad.

He explained that Sections 705-07, which allowed for the registration as an accredited insolvency practitioner, liquidator or receiver-manager, stated that such professionals can only practice if they have been granted accreditation by the CAC.

Abubakar also stated, “The combination of the offices of the Chairman AND Chief Executive Officer in the same person for publicly traded companies has been prohibited as part of the key reforms in this new legislation.”

He spoke out to emphasize the commitment of the commission to continue to implement and initiate enduring institution reforms, not only to meet the needs of business but also to establish a registry that would be ranked among the top ten in the world.

He stated that the commission had decided to complete the digitalization of its operations in order to provide effective and efficient services in 2022.

What you need to know

The 2020 Companies and Allied Matters Act was implemented. It has repealed 1990 Companies and Allied Matters Act. Therefore, the 1990 Act no longer exists and 2020 is in force.

A common seal was made optional in corporate governance to make it easier and less formal.

Get latest news from African Startup ecosystem

Latest stories

You might also like...