ANNUAL RETURNS: CAC SET TO DE-LIST DEFAULTING COMPANIES
The Corporate Affairs Commission (CAC) of Nigeria has threatened that companies that have failed to pay annual returns could be removed from its register very soon. The Companies and Allied Matters Act (CAMA) provides that every registered company should file annual returns every year commencing from 18 months after registration.
According to Mr Bello Mahmud, the Registrar General of the Commission, out of over 1.2 million registered companies with the CAC, 623,659 companies representing 49%, have never complied with payment of annual returns and defaulters would soon face punishment.
The delisted firms would be seen as non-existent by the commission and the Federal Government. The firms can choose to file a suit against the commission, but will only be relisted when it has fully met all the requirements of the CAC by updating its records and paying the penalty fees before returning to business.
For information on compliance contact your solicitor or chartered accountant.
