It is no longer news that the Corporate Affairs Commission (“CAC” or “Commission”) is taking steps to delist companies from its register. In a recent tweet, the Corporate Affairs Commission announced  that the Commission is taken steps towards enforcing the mandatory requirements of the Companies and Allied Matters Act, 2020. This requirement mandates companies and businesses to file annual returns on a yearly basis. However, the Commission noticed that thousands of companies are in default and opted to enforce the provisions of the law by publishing list of affected companies on its website.

A close consideration of the said list released by CAC shows that the companies that are to be affected by this move totals ninety-four thousand five hundred and eighty-one (94581) companies contained in 1551 pages. Meanwhile, in accordance with the relevant laws, these companies still have the opportunity to retain their status if the companies company with the provisions of the Act by filing their annual returns up-to-date. Failing to to so, the Commission has stated that the erring companies’ name would be struck off. The implications of striking off, as stated by the Commission, are that the companies will not be able to access their funds in the bank, the companies cannot do business any more, etc.

In view of the above, it is expected that companies affected should take steps to regularize their status with CAC by filing their annual returns up-to-date to salvage the situation.

See also: How to file annual return with CAC

This article was written by N. G. Usie, Esq

A Legal Practitioner and CAC Accredited Agent

Phone Number: +2348034893231

Email: ngusielawfirm@gmail.Com