The Corporate Affairs Commission (CAC) has announced its plan to remove 100,000 registered companies from its database due to their failure to file annual returns. The Registrar-General and Chief Executive Officer of CAC, Alhaji Garba Abubakar, revealed this during a training session on the ‘Use of the beneficial ownership register’ in Lagos. The commission aims to step up its enforcement actions to address the issue of non-compliance with annual return filings.
Alhaji Garba Abubakar disclosed the CAC’s intention to delete 100,000 registered companies from its database during the training session. These companies have neglected to file their annual returns for the past 10 years, prompting the commission to take decisive action to strike them off the register.
The Registrar-General emphasized that before initiating the removal process, the CAC will notify the affected companies in accordance with section 692 of the CAMA (Companies and Allied Matters Act) of 2020. This approach allows the companies a chance to address the issue and rectify their non-compliance.
Abubakar clarified that the companies facing removal can be relisted on the register after settling their outstanding debts and obtaining a court order, as provided by the law. He urged companies to ensure timely payment of their annual returns to avoid being struck off the register.
Advancing Transparency with Beneficial Ownership Register: Alhaji Garba Abubakar also highlighted the significance of Africa’s first Beneficial Ownership Register, developed by the CAC with support and assistance from the World Bank. This register aims to combat corruption, money laundering, and terrorism financing. By unveiling the true ownership of companies, this measure is expected to enhance transparency and accountability in business operations.
The Corporate Affairs Commission’s decision to remove 100,000 companies from its database due to non-compliance with annual return filings underscores the importance of adhering to regulatory requirements. The commission’s proactive approach, including notifying the affected companies before taking action, allows for potential remediation. Moreover, the introduction of Africa’s first Beneficial Ownership Register is a significant step towards combating financial crimes and promoting transparency in the business landscape.
