CAC urges clients to revalidate accounts by April 1 for new framework

*The Corporate Affairs Commission says necessary guidelines are currently being developed to cover the process of the new insolvency framework in line with amended CAMA 2020

Isola Moses | ConsumerConnect

As part of the process of the Commission’s new insolvency framework, the Corporate Affairs Commission (CAC), in Nigeria, has stated that all accredited customers must revalidate their accreditation with the office before the end of March, or have their respective accounts suspended.

Alhaji Garba Abubakar, Registrar-General/Chief Executive, Corporate Affairs Commission (CAC), in an interactive session with media professionals, disclosed that the Commission has introduced an accreditation system for insolvency practitioners.

The Registrar necessary guidelines are currently being developed to cover the process of the new insolvency framework as enshrined in the amended Companies and Allied Matters Act (CAMA) 2020.

According to the CAC Chief, though the revalidation programme is strictly for accredited customers, other registered entities are equally encouraged to update their accounts going forward.

Abubakar said: “This is necessary because we recognised the fact that some of our customers have died, some have changed their details, some have changed their locations without updating the database, some have even given their accounts for other people to manage it on their behalf.

“So to be sure of the integrity of the information we are going to be receiving from these accredited customers, all existing accounts must be revalidated before the end of March.”

He stated: “And by April 1, any account not revalidated will cease to have effect until the customer comes forward to revalidate.

“And the process of revalidation has been simplified as everything is done electronically and they don’t have to visit our office.”

On the proposed framework for insolvency practice, the Registrar said the new regulation had given the Commission the power to accredit the insolvency profession which hitherto lacked any accreditation authority or oversight.

“We have introduced accreditation system for insolvency practitioners and the requirements for such accreditation are clearly enshrined in our regulations.

“So, for you to be accredited you must meet those requirements and that is the only thing that will qualify you to practice as an insolvency practitioner,” he noted.

Abubakar noted, “unlike before when anybody can operate – there was no authority vested with the accreditation or have oversight over the activities of insolvency practitioners – the new law has given us the power to accredit.”

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