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  The Corporate Affairs Commission (CAC) says it will begin delisting almost 100,000 businesses from its database soon. The commission has explained that the affected businesses are being removed from its register due to their failure to comply with the provisions of the Companies and Allied Matters Act (2020).
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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.

What Did the CAC Say?

In a tweet put out on Monday, the CAC explained that it was set to remove a total of 94,581 firms from its database. It advised the general public to check its website for a list of the affected companies. It said that such businesses have only 90 days to comply with the provisions of the CAMA 2020 or risk being derecognized. The list of businesses set to be delisted by the CAC can be found HERE.
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Why is the CAC Delisting Companies?

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.

What will happen to Companies Delisted by the CAC?

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.
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How Can Businesses Avoid Being Delisted?

To avoid being delisted, companies are required to file all of their outstanding returns with the CAC within 90 days of the publication of the list of erring companies on the CAC’s website. If they fail to do so, they will be eliminated from the list of registered businesses, and treated as unregistered business entities. If you would like to find out whether or not your business has been slated for delisting, you can check the list of companies marked for removal from the CAC’s database HERE. Featured Image Source: Legit NG
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This article was first published on 3rd August 2023

ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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