An Appraisal of the Impact of Companies and Allied Matters Act 2020 on the Nigerian Business Community

Abstract

The uneasy regulatory regime including cost of establishing and managing businesses in the country affects profitability. These government regulations tailored by the Corporate Affairs Commission (CAC) has hampered the production and growth of businesses in Nigeria over the years. Following concerns on the Companies and Allied Matters Act (CAMA) 1990 becoming outdated, the Act was amended with a view to bringing our corporate law up to speed with global trends and thereby encourages investments that will allow small businesses and start up to thrive, lower cost and ease regulatory burden. Based on this premise, the Paper seeks to appraise the impact of CAMA 2020 on the Nigerian business community. The study found among other things, that the administrative proceeding Committee under Section 851 of the new CAMA 2020 has been saddled with the responsibility of adjudicating on matters arising in the Act as provided by Section 38 of the Companies regulation, which negates the principles of fair hearing, as Constitutionally guaranteed. Data generated from the study were analysed using doctrinal and descriptive methods, as well as content analysis. The Paper makes recommendations which includes strict and total compliance with the codes of corporate governance in Nigeria; the imperative of amending the CAMA 2020 in order to return the exclusive jurisdiction of the Federal High Court; ensuring transparency and adequate check on the excesses of the corporate organs; and restoration of the pre-registration requirement of the endorsement of the statement of compliance by the legal practitioner; etcetera.