By Kingsley Okoye
Abuja, Aug. 8, 2020 The Senate says it received the cheering news that President Muhammadu Buhari has assented to the repealed and re-enacted Companies and Allied Matters Act (CAMA).
Spokesperson of the Senate, Sen.Ajibola Basiru (APC Osun), in a statement in Abuja on Saturday said Buhari’s assent of the CAMA bill had completed the final stage for the enactment of the Act, repealing and replacing the 30-year-old legislation.
He said assent to the bill had further demonstrated the cordial relationship between the National Assembly and the Presidency.
Basiru said assent to bill was also a validation of the efforts of the National Assembly in providing the needed legislative interventions for the resuscitation of the nation’s economy.
“The amendment as passed by the Senate and House of Representatives was to strengthen the legal framework for the incorporation of companies, limited liability partnerships, limited partnerships, registration of business names, incorporation of trustees of certain communities, bodies, associations.
“It is to also address incidental matters, several corporate legal innovations, geared toward enhancing ease of doing business in Nigeria.
“It is not in doubt that the provisions of the repealed Act had become very obsolete.
“It therefore could not effectively address challenges being faced by companies and incorporated trustees such as business rescue for insolvent companies and the merger of Incorporated Trustees for associations that share similar aims and objectives.”
Basiru said it was gratifying to note that the new Act provides for innovative processes and procedures to ease the operations of companies.
He listed such innovations operations to include introducion of statements of compliance, replacing authorised share capital with minimum share capital to reduce costs of incorporating companies.
Others are providing for electronic filing, electronic share transfers, e-meetings, remote general meetings for private companies in response to the disruptions to close contact physical meetings due to the COVID-19 pandemic.
Others, according to him, are the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency.
Besides the CAMA, he noted that Senate had demonstrated commitment to legislative interventions to reposition the Nigerian economy, particularly to cushion the disruptions occasioned by COVID-19 pandemic.
“It has recently passed a new Banks and Other Financial Institutions Bill, Railways Bill, Police Bill amongst other legislations waiting concurrence by the House of Representatives and assent by Mr President.”
He said the Senate and ultimately the 9th National Assembly would continue in line with its constitutional mandate to make laws for the peace, order and good governance of the Federation.
Basiru added that the Senate would also continue to accord the executive necessary legislative cooperation that would promote and sustain the wellbeing and security of the citizenry and prosperity of Nigeria.