October 02 , 2012 / Friday Ekeoba, Lagos
WORRIED by the continued use of some obsolete section of the Companies and Allied Matters Act (CAMA) to run businesses in the domestic economy, some shareholders in the capital market have called on the Federal Government to carry out a holistic review of the Act to align with international best practices.
The shareholders, under the assemblage of the Proactive Shareholders Association of Nigeria (PROSAN), said some section in the CAMA had become inimical to the proper running of going concern especially in the capital market.
“As our great nation celebrates its 52nd independence anniversary, this is a clarion call on our capital market stakeholders to seek need to amend the CAMA for the purpose of a modern, better and efficient capital market,” PROSAN national coordinator, Mr Taiwo Oderinde, said.
He noted that “There have been lots of development in the capital markets all around the globe via innovations and amendments. The last time our CAMA was amended was in the year 1990.
“Therefore, we are calling on the Presidency, the Senate and House Committees on Capital Market, the judiciary, the federal ministries, SEC, NSE, IST, companies, shareholders associations and other capital market stakeholders to take this timely suggestion seriously and to have inputs in this proposed CAMA amendment.”
He explained that “There are lots of ready made issues in the Code of Conducts for the capital market stakeholders by SEC that could be included. Also, the use of modern information technology in the operation of our capital market that will facilitate innovations such as e-Dividend, e-Annual report, e-Notice of meetings, e-Bonus among others”, he added.
Suggesting how the new business document Act would work, Oderinde said what the amendment would do is to empower the legal framework and the operations of capital market for maximum delivery.
He said the proposed amendment “will make our capital market to become a modern and sophisticated like its contemporaries in other jurisdictions of the world. Consequently, foreign investors will be attracted by this development.”
PROSAN further suggested that the Federal Government should help in the reduction of tax being paid by investors in the market from 10 per cent withholding tax on dividends that was introduced during CAMA amendment of 1988 during General Ibrahim Babangida’s administration to five per cent.