CAC to Remove 100,000 Companies from Database for Failing to File Annual Returns

…By for TDPel Media. The Corporate Affairs Commission (CAC) has recently announced its decision to eliminate 100,000 companies from its database due to their failure to submit annual returns.

Alhaji Garba Abubakar, the Registrar-General and Chief Executive Officer of CAC, shared this significant development during a training event held in Lagos, which focused on utilizing the beneficial ownership register.

Enforcement of Removal and Legal Requirements

During the event, Alhaji Garba Abubakar emphasized that the CAC is taking active measures to enforce the removal of these companies, which have not filed their annual returns for the past ten years.

However, before taking any action, the CAC will first send a notice to the affected companies, complying with the provisions of section 692 of the Companies and Allied Matters Act (CAMA), 2020.

He further clarified that the delisted companies can potentially be reinstated after settling their outstanding debts and obtaining a court order, as mandated by the law.

This move aims to encourage timely compliance with the annual returns filing to avoid being struck off the register.

The Beneficial Ownership Register: A Tool Against Corruption and Terrorism Financing

During the training event, Alhaji Garba Abubakar highlighted the first Beneficial Ownership Register in Africa, which was developed by the CAC with support from the World Bank.

He expressed optimism that this register would play a crucial role in combating corruption, money laundering, and terrorism financing.

Utilizing the Beneficial Ownership Register

The Registrar-General encouraged various entities, including investigating agencies, legal practitioners, journalists, and civil society organizations, to make effective use of the Beneficial Ownership Register in their respective work.

By doing so, they can contribute significantly to the ongoing efforts in fighting financial crimes and ensuring transparency in business transactions.

Commendation and Collaboration

The CAC’s milestone achievement received praise from several stakeholders.

Dr. Adeyeye Adefulu, the Chairman of the Nigerian Bar Association Section on Business Law, applauded the commission and promised to maintain a strong relationship between the NBA-SBL and CAC.

He encouraged members of the association to apply the insights gained from the training to positively impact the Nigerian economy.

Similarly, Aminu Gwadabe, the President of the Association of Bureau De Change Operators of Nigeria, acknowledged the crucial role of the Beneficial Ownership Register in the fight against money laundering and terrorism financing.

He urged professionals to exercise due diligence when dealing with clients, emphasizing the importance of understanding and adhering to the legal requirements related to financial transactions.

In conclusion, the CAC’s decision to remove non-compliant companies from its database and the introduction of the Beneficial Ownership Register are vital steps toward enhancing transparency and integrity in business practices in Nigeria.

By taking these measures, the commission aims to bolster the country’s financial system’s resilience against corruption, money laundering, and terrorism financing.

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