A R T I C L E S E R I E S

A U G U S T 2 0 2 0

HIGHLIGHTS OF THE NEWCOMPANIES AND ALLIEDMATTERS ACT

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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 Although it was an improvement of the repealed Companies Act 1968, it wasconsidered as being obsolete almost thirty years after it came into force. There were cries from manyquarters for CAMA to be amended so that investors and business owners can operate under favourablebusiness conditions.

Consequently, on 7th August 2020, President Muhammadu Buhari signed the Companies and AlliedMatteres Act 2020 (CAMA 2.0/the Act) into law which effectively repeals CAMA. Although nocommencement date was provided in the New Act, it is presumed that, on the basis of Section 2 of theInterpretation Act,  it is deemed to have come into force on the day it was signed into law.

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INTRODUCTION

Clearly, most of the provisions of the Actattended to some of the perceivedshortcomings CAMA and brought it in linewith global best practices.  The major substantive amendments arehighlighted below, in comparison with theold provisions of CAMA.

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The provisions of the Act are a good step inthe right direction. Companies can now holdvirtual meetings which is very relevant,especially in light of the COVID-19pandemic. Furthermore, the introduction oflimited liability partnerships, business rescueand the possibility of companies havingsingle shareholders may have far reachingimplications for the business climate inNigeria.

It will now remain to be seen how CAC andthe business community will proceed toimplement most of the provisions of theCAMA 2.0.

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