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Reforms: Company common seals no longer mandatory ─CAC

Company Common Seals Photo: Exporters India

*Garba Abubakar, Registrar-General of Corporate Affairs Commission, explains the use of common seal by registered companies is no longer mandatory, as he reels off other reform initiatives of the regulatory Commission

Isola Moses | ConsumerConnect

Nigeria’s Corporate Affairs Commission (CAC) has said disclosed that the use of common seal by registered companies is no longer mandatory.

ConsumerConnect reports Alhaji Garba Abubakar, Registrar-General of CAC, noted this in statement issued Thursday, December 9, 2021, in Abuja

Mr. Rasheed Mahe, Media Head at the Commission said Alhaji Abubakar stated the development after declaring open a one-day Customers Stakeholders’ Forum.

Represented at the forum by Mr. Abdulhakeem Mohammed, Director Compliance of CAC, the Registrar-General enumerated a series of reform initiatives by the Commission, pursuant to CAMA 2020.

He said that notable features of the new law included the dispensation of the appointment of Company Secretary by private companies in pursuant of Section 330 of the new law.

While electronic signature has been introduced by the new law, a man is allowed to register a private company, and incorporated trustees amalgamation with similar objectives is now possible under Section 849, said the Commission.

According to Abubakar, the minimum share capital for private companies was increased to N100,000 and two million for public liability companies.

He said it was upgraded to two million respectively under Section 27, Sub-Section 2 of the act.

Besides, the Registrar-General noted that small companies and one-man companies are now permitted to hold statutory and Annual General Meetings (AGMs) overseas.

The provisions of Sections 705 and 707 which introduced the registration of accredited insolvency practitioner, liquidator, receiver or receiver-manager stated that such professionals could only practice upon obtaining due accreditation from the CAC.

Abubakar said key reforms contained in the new law also stated that there is now prohibition of the combination of the office of the Chairman and Chief Executive Officer (CEO) in one and the same person for public companies.

The commission, he also said, in collaboration with its software provider was making strenuous efforts to fine-tune its processes in line with global best practices.

Abubakar restated the CAC’s resolve to continue to initiate and implement enduring institutional reforms tailored not only for the demands of ease of doing business, but to establish a registry that would rank as one of the best 10 in the world.

Complete digitisation of its operations to further provide efficient and effective services in 2022, he added.

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