In a significant move, the Corporate Affairs Commission (CAC) is poised to delist a staggering 91,843 companies from its register due to their failure to file annual returns. This announcement follows a previous commitment by the CAC to remove 100,000 companies, reinforcing its dedication to enforcing compliance within the business sector.
In a list recently published on its official website, the CAC detailed the names of the companies slated for delisting. Interestingly, this figure is slightly lower than the 94,581 initially reported in August, suggesting some companies may have rectified their filing status or successfully appealed the decision. Nevertheless, this enforcement effort is in line with the commission's earlier pledge to clean up its database of non-compliant entities.
The Registrar-General and Chief Executive Officer of the CAC, Garba Abubakar, first announced the initiative in July, emphasizing the commission's commitment to upholding regulatory standards. At that time, he indicated that notice of striking off would be sent to the affected companies before any delisting action, following the legal provisions outlined in section 692 of the Companies and Allied Matters Act (CAMA), 2020.
In an update released on December 5, the CAC reiterated its intention to proceed with the delisting, urging companies that have already filed complete annual returns in response to the earlier publication to confirm their removal from the list. The updated list is available on the Commission's website for public scrutiny.
Companies finding themselves on the list despite filing complete annual returns are encouraged to contact the CAC via [email protected] within 30 days, providing evidence of their filing. The commission emphasized the legal consequences of being struck off the register, stating that it is unlawful for such companies to continue their business operations until their names are restored through an order of the Federal High Court.
Importantly, the CAC clarified that the delisting does not absolve companies or their directors from liabilities under the Companies and Allied Matters Act, reinforcing the commission's commitment to ensuring accountability within the business community.
As the affected companies grapple with the implications of this mass delisting, the business community awaits further developments, closely watching how this regulatory action will impact the corporate landscape in Nigeria.
