By Chris Udochukwu
Abuja (Precise Post) – President
“President’s action on this historic legislation, therefore, repealed and replaced the extant Companies and Allied Matters Act, 1990, with corporate legal innovations.”
Disclosing this via his verified twitter handle, Ajuli Ngelari tweeted that this is geared toward enhancing ease of doing business in the country.
According to him, such innovations include:
a. Filing fee reductions and other reforms to make it easier and cheaper for small and medium-sized enterprises to register and reform their businesses in Nigeria.
b. Allowing corporate promoters of companies to establish private companies with a single member shareholder, creating limited liability partnerships & limited partnerships to give investors and business people alternative forms of carrying out their business in an efficient way.
c. Innovating processes & procedures to ease the operations of companies, by introducing Statements of Compliance; replacing “authorised share capital” with minimum share capital to reduce costs of incorporating companies; and providing for electronic filing electronic share transfers, e-meetings as well as remote general meetings for private companies in response to the disruptions to close contact physical meetings due to the COVID-19 pandemic;
d. Requiring the disclosure of persons with significant control of companies.
In a register of beneficial owners to enhance corporate accountability and transparency.
e. Enhancing the minority shareholder protection and engagement; introducing enhanced business rescue reforms for insolvent companies. permitting the merger of Incorporated Trustees.