| Doing Business in Nigeria |    3693 VIEWS  |
| Doing Business in Nigeria | |
| 3693 VIEWS | |
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Monday, November 30, 2020 / 7:57 AM /
Nifemi Taiyese for Proshare WebTV / Header Image Credit: WebTV
Stakeholders in the public and private sector reviewed details of the recently signed company and allied matters act (CAMA) 2020 and how it could transform Nigeria's business environment. Chief Chris O. Okunowo, F.IoD President and Chairman Governing Council, IoD Nigeria in his welcome remarks acknowledged that the theme was chosen in recognition of the issues in the CAMA Act since August 2020.
He was of the opinion that
the 2020 CAMA Act had generated controversies and brought about challenges and
likely adverse consequences for business organizations.
The Institute of Directors
Nigeria according to him was an authoritative voice that interacts with the
government and advocates on several related issues that helps to bring and
provide clarity with those in the space as it concerns corporate governance,
the business environment and public service.
Chief Okunowo speaking at
a recent virtual National Stakeholders Forum that discussed the theme "The CAMA Act 2020: Matters Arising and The Way Forward" highlighted the
following objectives of the National Stakeholders Forum which aimed to achieve:
In his keynote speech
Alhaji Abubakar Garba, the Registrar General, Corporate Affairs Commission
(CAC) said that key stakeholders from several sectors were a part of the CAMA
committee.
Alhaji Garba mentioned
that the gazetted copy of the CAMA Act was made available on the 19th
of November 2020 and warned individuals and organizations to be wary of the
fake copies in circulation. He however revealed that a request for an
electronic format has been made.
The Registrar General also
highlighted the fact that the CAMA 2020 will help to ensure appropriate
regulation for Micro, Small and Medium Enterprises and to achieve transparency
in local business.
He also brought to the
fore the plans of the commission to assist in developing more robust
regulations for the business environment in Nigeria.
According to him the
National Stakeholders forum explored quick transition in the new legal regime
to align operations with provisions of the Act and to promote an understanding
of the new business models provided by CAMA 2020.
Speaking on a new software
that would be launched in January 2021 by the Commission, the Registrar General
assured stakeholders that the new software would have an updated and simplified
interface but would recognize the role of lawyers, chartered accountants in
representing their clients.
He stressed the fact that
the commission is working assiduously to ensure that the infrastructure needed
to implement the CAMA Act, is ready which will help strengthen the Nigerian
Business Environment.
Professor Konyinsola
Ajayi, SAN, Managing Partner, Olaniwun Ajayi LP gave insights into insolvency
for companies and its impact on employment. He stated that the provisions on
insolvency brings clarity to concepts that are evolutionary and international.
He identified cash flow insolvency and balance sheet insolvency as key types to
take note of.
Speaking on the concept of 'Netting' he said it allows multiple transactions to be settled and is
important in the event of insolvency.
Ajayi said that the CAMA
Act sheds light on directorship which now implies that a director who sits on
the board of a company must ensure that the company is properly run and does
not get into trouble.
For him the CAMA Act is
very useful as it also looks at international standards, which provides
opportunities that will attract foreign investors.
With the new rules and new
software in place, Professor Ajayi believed that the CAMA Act will be embraced
and enjoyed.
Mr. Ayuli Jemide Founder,
Lead Partner Detail Commercial Solicitors in his presentation focused on how
the improvements in the CAMA Act could support investments.
From his perspective four
approaches to business law could be identified;
Jemide said the CAMA Act
now recognizes limited liability partnerships which would help the SMEs as the
issue of segregation now comes to play.
"The CAMA Act is a well
drafted law that will help to move the economy forward and one of the key
revisions should be from the standpoint of independent Directors" Jemide said.
In her contribution Mrs.
Abimbola Akeredolu, SAN, and Partner, Banwo & Ighodalo said Small, Medium
Enterprises and Start-Ups will benefit immensely from the enactment of CAMA
2020, mainly because it now allows small companies to have a director and
shareholder.
Mrs. Akeredolu said it
took 30 years to get a major repeal of the CAMA Act, the best law is of very
little use if not implemented properly she said.
She made a strong point
that the economy of Nigeria will move forward if the CAMA Act 2020 is
implemented to its full extent.
The event featured a panel
session moderated by Mr. Chinwendu Enechi, Associate Director, Oil, Gas Power
Group, Anderson Tax in Nigeria.
Related News
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2.
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3.
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