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Companies And Allied Matters Bill Passes Third Reading At the House Of Representatives
The Companies Allied Matters (CAM) Bill has passed the third reading at the Federal House of Representatives.
Dr Jumoke Oduwole, SSA Industry, Trade & Investment to the President (OVP) in a statement released on Tuesday in Abuja.
The Bill, which was passed by the Senate in 2018 is the largest business reform bill to be passed in Nigeria in over 28 years, as it represents the re-enactment of the existing Companies and Allied Matters Act 1990 (CAMA).
The CAM Bill signifies meaningful progress towards aligning business practices, which had been heavily constrained by several provisions in the old 1990 Act, with global standards as it speaks to all matters affecting a company, from incorporation to winding up and insolvency.
The Bill directly affects the influx of foreign direct investment (FDI) into Nigeria due to its relevance to the ease of doing business and investing in Nigeria.
According to the legislative brief of the new Bill, it has new features that will make doing business in Nigeria a lot easier. “In order for Nigeria to improve its standing in World Bank Doing Business (WBDB) Ranking Index, it needs to improve on its ease of establishing and running businesses and bring its business legal regime in tandem with modern advances,” the legislative brief explained.
A key thrust of the Bill is therefore aimed at simplifying the process of starting and growing a business in Nigeria by abolishing the requirement for a company to have authorized share capital, enabling a single person to form a private company, introducing for the first time a business rescue process, and introducing the concept of limited liability partnership.
It also ensures more appropriate regulation for micro, small and medium scale enterprises, by making it optional for smaller companies to have a company secretary, comply with accounting requirements, and for one-man and small companies to hold an annual general meeting, as well as introducing separate models of articles of association for private companies.
In line with Presidential Enabling Business Environment Council (PEBEC) mandate, this re-enactment is a strong demonstration of the Administration’s commitment to improving the business environment, and ultimately Nigeria’s competitiveness.
The passage of the Bill was promoted by the Corporate Affairs Commission (CAC), and was made possible through the collaborative efforts of several public and private sector stakeholders supported by the Enabling Business Environment Secretariat (EBES), including the Senate, the House of Representatives, the National Assembly Business Environment Roundtable (NASSBER), the Nigerian Economic Summit Group, and a number of leading commercial law firms in Nigeria.
Speaking on this positive development, Dr. Jumoke Oduwole, the Secretary of the Presidential Enabling Business Environment Council (PEBEC) and Senior Special Assistant to the President on Industry, Trade and Investment, stated “This is a significant hurdle crossed in our efforts to help businesses grow in Nigeria, and in driving our Ease of Doing Business ranking as a nation.
“We congratulate every Nigerian on this achievement, and we applaud the several partners that came together in partnership to make this work.
“We look forward to receiving the Bill for Mr President’s assent, and we are confident of the benefits this will bring to businesses to drive exponential growth in the next few years.”
Some other benefits of the landmark reform Bill include the promotion of policies that will enhance the regulatory environment for growth of Micro, Small and Medium Enterprises (MSMEs), reduce entry barriers for smaller businesses, enhance transparency and shareholder engagement, align regulatory frameworks with international best practice for competitiveness, and increase the efficiency of the regulatory process in line with today’s realities.
Further benefits are faster and cheaper registration of companies limited by guarantee, easier authentication of documents, prevention of asset shielding, and combating money laundering, terrorism financing or other illicit or criminal activities using companies as vehicles; among others.
Federal government has unveiled a new policy for Nigerians to deposit dollar bills held outside the formal banking system without scrutiny.
Nigerians have nine-month deadline to do this according to Wale Edun, minister of Finance and coordinating minister of the Economy.
Edun who spoke after the Thursday’s National Economic Council (NEC) meeting in Abuja, said that “there will be no penalty; there will be no taxes, and there will be no questions.”
“There is going to be a release today, details by the federal government through the Ministry of Finance, in conjunction with the Central Bank, a programme, starting today, 31st of October, and lasting nine months, that will allow people to bring in cash that is outside the banking system.
“So therefore it is unsafe, it is unsecure and it is outside of legal limits. They will allowed forbearance to bring dollars cash. Let me emphasize once again, it is to bring dollars that they are holding outside the system to be able to bring them in and credit it to their bank accounts, as long as it is not proceeds of crime, illicit money.
“They just meet the normal ‘Know Your Customer’ criteria of banks and they have an opportunity to bring in those funds, make them safe, make them secure, and make them available through normal, economic activity.”
The minister also stated that 25 million Nigerians have benefitted from federal social protection initiatives, including digital outreach, microenterprise loans, and sector-specific support for power, agriculture, manufacturing, health, and compressed natural gas initiatives.
The National Insurance Commission, (NAICOM), on Wednesday, sacked the board of African Alliance Insurance Plc with effect from October 30, 2024.
The Commissioner for Insurance, Mr. Segun Omosehin, disclosed this during a press conference in its Lagos office, that an interim board and management have be appointed.
The new interim board are: Dr Haruna Mustafar, a former director at Central Bank of Nigeria; Anthony Achebe – Non-Executive and Haj. Halimatu M. Khabeeb – Non-Executive Director.
The management team is led by former Managing Director of International Energy Insurance and Cornerstone Insurance Plc, Jacob Erabor, as Managing Director/ CEO; Wasiu Amao – Executive Director, Technical and Ms. Oremeyi Longe – Executive Director, Finance.
He noted that the interim management has up to one year to turn around the company.
He said the decision follows an extensive monitoring and review of the company’s financial condition, governance, and operational practices, which revealed significant concerns regarding its ability to continue operating in a safe and sound manner which has for some time now generated a lot of uncertainty over claims settlement and payment to annuitants under the company.
The Interim Management Board, according to him will oversee the company’s operations, ensure compliance with regulatory requirements, and implement necessary reforms.
While noting that the Commission will work closely with all stakeholders, including annuitants, policyholders, employees, and investors, to minimise disruption and ensure continuity.
”The objective of this takeover is to protect the interests of African Alliance Insurance Plc’s annuitants, policyholders, other stakeholders, and the broader insurance industry while ensuring the company’s return to stability and compliance.
“The Commission is committed to maintaining the stability and integrity of the Nigerian insurance industry. Our actions today demonstrate our resolve to address concerns and protect the annuitants, policyholders and public interest.”
Economic and Financial Crimes Commission (EFCC) has arrested four suspected bank hackers in Abuja for alleged conspiracy, unauthorized access to banks’ computer systems and fraudulent withdrawal of depositors’ funds.
The suspects are Chima Anthony Nwigwe, suspected leader of the hacking syndicate alongside three others: Effiong Victor Emmanuel, Mohammed Bello Mahmud, the managing director, Downstone Ultimate Limited, and Daminan Ali.
Dele Oyewale, spokesperson, EFCC, said in a statement on Tuesday, that the suspects were arrested in a sting operation in Abuja following actionable intelligence about their suspected involvement in hacking, compromising databases of commercial banks, thereby causing fraudulent transfers and withdrawals through different digital platforms.
He also noted that the suspects would be charged to court upon conclusion of investigations.
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