The CAC's Stride Towards Accountability, Delisting Thousands of Companies for Annual Return Non-Compliance

Thousands of Nigerians to lose their jobs as CAC set to delist over 91,000 companies for failing to file their annual returns with it.

The Corporate Affairs Commission (CAC) plans to remove 91,843 companies from its records due to their failure to submit annual returns.

The commission, in a list published on its website, listed 91,843 companies for delisting (2,738 less than the 94,581 it initially published in August).

This is still less than the initial 100,000 companies that CAC said it would remove in an earlier announcement.

As the regulatory body overseeing the affairs of companies in Nigeria, the CAC plays a pivotal role in promoting good corporate practices and safeguarding the interests of stakeholders. Delisting non-compliant companies is a strategic measure to streamline the registry, purge inactive entities, and maintain an accurate and up-to-date database.

The CAC’s decision to delist companies for failure to submit annual returns is not only a regulatory exercise but also a proactive measure to weed out dormant or non-functioning entities. This process ensures that the registry remains reflective of active businesses, facilitating better regulatory oversight and decision-making.

In July, the Registrar-General and Chief Executive Officer, CAC, Garba Abubakar, revealed that the commission would delete 100,000 registered companies from its database for failing to file an annual return.

“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.

“Companies that filed complete annual returns in response to the earlier publication are advised to confirm their removal from the list of companies to be struck off. The updated list for publication is available on the Commission’s website,” CAC said in an update on December 5.

It noted that companies that have submitted complete annual returns but find their names on the list are advised to email evidence of filing to [email protected] within 30 days.

It further stated that it is unlawful for any company whose name has been struck off the register of companies to carry on business unless its name is first restored to the register by an order of the Federal High Court.

“The General Public should note further that the striking off of the name of a company from the Register of Companies is without prejudice to the powers of the Commission to enforce any liability arising under the Act against the directors of the struck-off company,” it added.


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