INTRODUCTION
The Companies and Allied Matters Act Chapter C20 Laws of the Federation of Nigeria 2004 (CAMA) was enacted in 1990. Although it was an improvement of the repealed Companies Act 1968, it can be considered as being obsolete almost thirty years after it came into force. There have been cries from many quarters for CAMA to be amended so that investors and business owners can operate under favourable business conditions.
Consequently, on 22 January 2019, the House of Representatives of the Federal Republic of Nigeria passed the Bill for an Act to Repeal the Companies and Allied Matters Act 1990 and enact the Companies and Allied Matters Act 2018 (the “Bill”). This is coming after the Senate had previously passed the Bill in May 2018.
The Bill seeks to cure the existing shortcomings of the existing CAMA and bring it in line with global best practices.
The major substantive amendments are highlighted below: