The Nigerian Senate on Tuesday 15th of May 2018 repealed the Companies and Allied Matters Act (“CAMA”) Cap C20 Laws of the Federation of Nigeria 2004 and passed its re-enactment of the law after twenty-eight (28) years of its being in force. This is a much awaited and welcome reform in view of the fact that the CAMA is the primary law regulating companies generally in Nigeria. The passage of this law is perhaps the most significant legislative reform in recent Nigerian history.
The re-enacted law introduces significant changes to Nigerian company law and we have highlighted some below:
- Single member companies: thereby making it possible for one person to form, own and run a company unlike what currently exists whereby every company must have at least two (2) directors and shareholders.
- Electronic registration of businesses: this is legislative affirmation of a process that has been underway since 2017 following the ease of doing business reforms by the Presidential Enabling Business Environment Council.
- New form of legal entity known as Limited Liability Partnership (“LLP”): which combines the organizational flexibility and tax status of a partnership with limited liability for its partners.
Click here to read more.