BIGGEST REFORM IN NIGERIAN CORPORATE LAW
1 min readToday, the amended Companies & Allied Matters Act was signed today by President Buhari.
Key reforms:
- A company can now have only one shareholder
- No need for company seal anymore
- Incorporated Trustees (NGOs) can now merge
- Prohibits anyone from serving as director in more than 5 public companies
- Electronic filing, share transfer & e-meetings for private companies
- Introduces Limited Liability Partnerships (LLP) & Limited Partnership
- Small companies no longer need to appoint auditors
- Authorized share capital replaced by minimum share capital
- Provision for virtual Annual General Meeting
- During incorporation, applicant can sign their statement of compliance (no need for lawyers)
- Private companies no longer need to appoint company secretary
- Increased minority protection –
S.265(6) says “The chairman of a public company shall not serve as the Chief Executive Officer of such company” - Reduction in filing fees for registrations a charge (now 0.35% of value of the charge)
- Rescue provisions for insolvent and distress companies
