The federal government has officially announced its intention to streamline its database by eliminating a total of 100,000 registered companies.
During a seminar held in Lagos, Mr. Garba Abubakar, the esteemed Register General of the Corporate Affairs Commission, made a noteworthy revelation. The subject of his discourse was the ‘Use of the Beneficial Owners Register’.
According to his statement, the companies will be subjected to delisting due to their failure to fulfill annual returns for the preceding decade.
Nevertheless, he unequivocally expressed that the aforementioned enterprises shall be reinstated subsequent to the settlement of their unpaid liabilities and the attainment of a judicial ruling, in accordance with the stipulations set forth by the Companies and Allied Matters Act of 2020.
“The CAC has intensified its enforcement efforts against a staggering number of 100,000 companies that have neglected to submit their annual returns,” he stated.
The Corporate Affairs Commission (CAC) has recently undertaken the delisting of a substantial number of companies from its records. This action was taken due to the failure of these entities to fulfill their obligation of submitting tax reports to the government. Specifically, a staggering 100,000 companies have been affected by this measure.
The announcement was made by Garba Abubakar, the Registrar General of the Commission, during a meeting with representatives from the Civil Society, the Media, and other Security Agencies in Kano. The focus of the discussion was on the implementation of Beneficial Ownership Register activities.
The president of the CAC highlighted the explicit provisions of the law regarding procedures, which clearly state that failure to file returns by any company will result in its non-existence or inactive status, making it liable for striking off.
Additionally, it was communicated that the identities of the aforementioned companies shall be promptly disclosed on the Commission’s official website. Subsequently, a period of four weeks shall be granted for these entities to provide a response. Failure to do so will result in their exclusion from the CAC data.
According to Abubakar, subsequent to the delisting of the initial 100,000 companies, a subsequent cohort of non-compliant companies will be assembled.
The potential ramifications of experiencing a strikeout can be likened to misplacing valuable assets,” he cautioned. “However, individuals are granted the opportunity to submit a fresh application for inclusion in the registry, and in the event that their application is not reinstated within the subsequent decade, any possessions they possess will be permanently forfeited.
The Registrar has conveyed that the register should not be regarded as an end in itself, but rather as a tool to achieve a specific objective, specifically in the realm of detecting and preventing financial crimes perpetrated by corporate entities.
It is widely acknowledged that a significant portion of procurements are carried out via corporations. However, the introduction of the new system has revolutionized this process by offering valuable insights into the authentic proprietors of these corporations. Consequently, investigators are now equipped with enhanced capabilities to accurately ascertain the genuine individuals who exercise control over these corporate entities.