Cac To Delete 100,000 Registered Companies

The Corporate Affairs Commission, CAC is set to delete 100,000 registered companies from its database.

The Registrar-General/CEO of CAC, Alhaji Garba Abubakar, disclosed this during a Training Workshop on the Beneficial Ownership Register (BOR) in Lagos.

These companies are facing deletion because they have failed to submit annual returns for the past ten years, as required by the law.

Before taking action, the Commission will issue notices of striking off to the affected companies, following the provisions of section 692 of the CAMA,2020.

However, the companies can be reinstated by settling their outstanding debts and obtaining a court order, as per the legal provisions.

Alhaji Garba Abubakar urged companies to ensure they make timely payments for their annual returns to avoid being struck off from the registry.

Speaking about the BOR, which the CAC developed with the assistance of the World Bank, the Registrar-General highlighted its significance in combating corruption, money laundering, and terrorism financing in Africa.

The BOR is a beneficial ownership register that allows easy access to information on Persons with Significant Control (PSC).

It was launched in May of the same year and conforms to international standards of beneficiary ownership data standards (BODS) under the guidance of the World Bank.

This platform facilitates searching for information on PSC using various parameters, such as entity's name, entity's number, PSC first name, and PSC surname.

Stakeholders, including investigating agencies, legal practitioners, journalists, and civil society organizations, were encouraged to utilize the BOR to fulfil their respective responsibilities effectively.

At the event, Dr Adeyeye Adefulu, Chairman of the Nigerian Bar Association Section on Business Law (NBA-SBL), praised the CAC for achieving an essential milestone and assured continued cooperation between NBA-SBL and the Commission.

He urged members to apply the knowledge gained from the training to benefit the Nigerian economy.

Aminu Gwadabe, President of the Association of Bureau De Change Operators of Nigeria (ABDCON), emphasized the importance of the BOR in combating money laundering and terrorism financing.

He advised professionals to exercise due diligence while dealing with their clients to prevent such illicit activities.