Mass Delisting Looms: CAC Targets 91,843 Companies Over Annual Returns Neglect

In a bold move, the Corporate Affairs Commission (CAC) is gearing up to remove a staggering 91,843 companies from its register due to their failure to submit annual returns. This significant development comes on the heels of the commission’s recent publication of a list containing the names of the targeted companies on its official website. Notably, this revised figure is 2,738 less than the initially identified 94,581 companies published in August.

This initiative is part of the CAC’s proactive approach to enforce compliance, a stark contrast to its earlier announcement of intending to remove 100,000 companies. The reduction in the number of companies targeted for delisting suggests a dynamic process where the CAC is carefully evaluating and refining its actions.

The roots of this move trace back to July when Garba Abubakar, then the Registrar-General and CEO of the CAC, announced the commission’s intention to expunge 100,000 registered businesses from its database due to their failure to file annual returns. At the time, Abubakar emphasized the commission’s commitment to following due process, ensuring that affected companies received prior notice before any decisive action, in accordance with section 692 of the Companies and Allied Matters Act (CAMA) of 2020.

In a recent update on December 5, the CAC reiterated its stance, stating, “Further to its earlier notice of the commencement of striking off the names of Companies from the Register of Companies and published on August 2, 2023, the Commission hereby notifies the General Public that the list of Companies that have failed to comply with the provisions of the Companies and Allied Matters Act 2020, to file up-to-date annual returns is now ready for publication in accordance with the provisions of Section 692 of the Act.”

The CAC further instructed companies that had previously filed complete annual returns in response to the initial publication to confirm their removal from the impending delisting. The updated list, crucial for affected companies to check their status, is available on the commission’s official website.

In a bid to address potential discrepancies or oversights, the CAC has established a process for companies wrongly included in the delisting roster. Businesses that filed complete annual returns but find themselves on the list are encouraged to email compliance@cac.gov.ng within 30 days, providing evidence of their compliance. This demonstrates the commission’s commitment to fairness and transparency in the delisting process.

It is important to note that a company removed from the register of companies faces significant operational restrictions. Until the Federal High Court issues an order for reinstatement, such a company is barred from engaging in any business activities. This underscores the gravity of the CAC’s actions, emphasizing the importance of timely compliance with statutory obligations to maintain a favorable standing within the corporate registry.

As these developments unfold, the business community awaits further insights into the CAC’s enforcement strategy and how it plans to navigate the delicate balance between regulatory rigor and supporting businesses in meeting their compliance requirements. Stay tuned to Infostride News for continued coverage of this evolving corporate landscape.