The Companies and Allied Matters Act 2020 reshaped corporate practice in Nigeria. Here are five changes that matter to owners and directors.
The Companies and Allied Matters Act 2020 (CAMA) was the most significant overhaul of Nigerian company law in three decades. Whether you run a start-up or a long-established company, several reforms deserve your attention.
1. Single-member companies
A company can now be formed by one person, making incorporation simpler for sole founders who previously needed a second shareholder for form's sake.
2. Disclosure of beneficial ownership
Companies are expected to identify the individuals who ultimately own or control them, including persons with significant control. Accurate records and timely filings are no longer optional housekeeping.
3. Business rescue
The Act introduced an administration regime, giving distressed but viable companies a structured route to recovery as an alternative to immediate winding up.
4. Limited liability partnerships
Professional and investment firms now have access to the limited liability partnership as a distinct business vehicle.
5. Governance and filing discipline
Annual returns, records of directors and shareholders, and proper corporate housekeeping remain essential. Failure can attract penalties and complicate future transactions.
Good corporate housekeeping is cheaper than any remedy.
This article is general information and not legal advice. Speak to a lawyer about your specific situation.
This article is general information, not legal advice. Laws change and every situation is different — speak to a lawyer about yours.