The Digest:
The Corporate Affairs Commission (CAC) has warned Nigerian business owners that non-compliant companies will be delisted from its register. This process removes a company's legal status, often to the owner's surprise.
Key Points:
- The CAC is delisting inactive companies from its register.
- This process, called "striking off," makes a company non-existent.
- The CAC warned businesses to take legal compliance seriously.
- Businesses must file annual returns within 42 days of the anniversary.
- Owners often discover delisting when seeking loans or contracts.
- Companies must have unique names and required documents.
- They must appoint directors and declare share capital.
The CAC’s delisting process underscores Compliance's Consequence. It’s a vital lesson for entrepreneurs: maintaining legal status through due diligence is crucial for a company's survival and future growth.
Sources: Business Day, Corporate Affairs Commission (CAC)
