The CAM Bill signifies meaningful progress towards aligning
business practices, which had been heavily constrained by several provisions in
the old 1990 Act, with global standards as it speaks to all matters affecting a
company, from incorporation to winding up and insolvency. The Bill directly
affects the influx of foreign direct investment (FDI) into Nigeria due to its
relevance to the ease of doing business and investing in Nigeria.
According to the legislative brief of the new Bill, it has new
features that will make doing business in Nigeria a lot easier. “In order for
Nigeria to improve its standing in World Bank Doing Business (WBDB) Ranking
Index, it needs to improve on its ease of establishing and running businesses
and bring its business legal regime in tandem with modern advances,” the
legislative brief explained.
A key thrust of the Bill is therefore aimed at simplifying the
process of starting and growing a business in Nigeria by abolishing the
requirement for a company to have authorized share capital, enabling a single
person to form a private company, introducing for the first time a business
rescue process, and introducing the concept of limited liability partnership.
It also ensures more appropriate regulation for micro, small and
medium scale enterprises, by making it optional for smaller companies to have a
company secretary, comply with accounting requirements, and for one-man and
small companies to hold an annual general meeting, as well as introducing
separate models of articles of association for private companies.
In line with Presidential Enabling Business Environment Council
(PEBEC) mandate, this re-enactment is a strong demonstration of the
Administration’s commitment to improving the business environment, and
ultimately Nigeria's competitiveness. The passage of the Bill was promoted by
the Corporate Affairs Commission (CAC), and was made possible through the
collaborative efforts of several public and private sector stakeholders
supported by the Enabling Business Environment Secretariat (EBES), including
the Senate, the House of Representatives, the National Assembly Business
Environment Roundtable (NASSBER), the Nigerian Economic Summit Group, and a
number of leading commercial law firms in Nigeria.
Speaking on this positive development, Dr. Jumoke Oduwole, the
Secretary of the Presidential Enabling Business Environment Council (PEBEC) and
Senior Special Assistant to the President on Industry, Trade and Investment,
stated “This is a significant hurdle crossed in our efforts to help businesses
grow in Nigeria, and in driving our Ease of Doing Business ranking as a nation.
“We congratulate every Nigerian on this achievement, and we
applaud the several partners that came together in partnership to make this
work. We look forward to receiving the Bill for Mr President’s assent, and we
are confident of the benefits this will bring to businesses to drive
exponential growth in the next few years.”
Some other benefits of the landmark reform Bill include the
promotion of policies that will enhance the regulatory environment for growth
of Micro, Small and Medium Enterprises (MSMEs), reduce entry barriers for
smaller businesses, enhance transparency and shareholder engagement, align
regulatory frameworks with international best practice for competitiveness, and
increase the efficiency of the regulatory process in line with today’s realities.
Further benefits are faster and cheaper registration of companies
limited by guarantee, easier authentication of documents, prevention of asset
shielding, and combating money laundering, terrorism financing or other illicit
or criminal activities using companies as vehicles; among others.
Have you heard this? Many Nigerian exporters have been defrauded of huge amount of money in the process of exporting commodities to foreign countries. Do you know why? They were not trained on export operations, management, documentations and the best methods of payment in export trade. This is terrible!!! Nigerians cannot continue to lose money to foreigners in the course of export business. Exporters, why don’t you get a practical manual that teaches the stages of export trade from processing and packaging of commodities to receipt of payment by the foreign buyers. It teaches export operations, export management, export documentations and methods of payment in export trade? It is a contemporary step-by-step guide to export trade. It tells all the contemporary dynamics in export trade. To get it, click on the link below:
http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
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