The Corporate Affairs Commission (CAC) has announced plans to remove companies that have failed to submit their annual reports for ten years. In a press release issued on Wednesday, the Commission stated that a complete list of inactive companies is available on its website.
“This is to inform the general public that the Commission, pursuant to its powers contained in Section 692 (3) (4) of the Companies and Allied Matters Act No. 3 of 2020, intends to strike off from the Register, names of defunct or dormant companies that have not filed Annual Returns for a period of 10 years,” the statement read.
The CAC has given these companies a 90-day grace period from the date of publication to file all outstanding annual returns and avoid being delisted.
“It is to be noted that it is illegal to carry on business with the name of a company that has been delisted from the register, as such company is deemed to be dissolved,” the statement added.
In a related development, the CAC has also threatened to revoke the incorporation certificates of Bureaux De Change (BDC) operators whose licenses have been revoked by the Central Bank of Nigeria (CBN).
Several weeks ago, the CAC announced its intention to revoke the certificates of incorporation of some BDCs following the CBN’s revocation of their licenses.
In a statement on its website, the CAC specified that these companies must alter their names and purposes within three months to avoid losing their certificates of incorporation.
“The general public is hereby informed that following the revocation of the operational licenses of 4,173 Bureau De Change companies by the Central Bank of Nigeria via a Federal Republic of Nigeria Official Gazette (Vol. 111) No. 37 of February 27, 2024, for noncompliance with Regulatory Standards, the Corporate Affairs Commission in the exercise of its powers under section 8(1)(e) of the Companies and Allied Matters Act, 2020, advises these companies to change the names and objects of such companies within three months from the date of this publication,” the CAC notice stated.
“Failure to change the names and objects within the stipulated time frame shall result in cancellation of the certificate of incorporation and dissolution. It is to be noted that it is unlawful for a company whose certificate has been deemed dissolved to carry on business.”
In February 2024, the Central Bank of Nigeria (CBN) revoked the licenses of 4,173 Bureau De Change (BDC) operators due to non-compliance with regulatory standards. The acting Director of Corporate Communications, Sidi Hakama, announced that the operators failed to meet several requirements, including timely payment of necessary fees.
