OrderPaperToday – The Senate has commended President Muhammadu Buhari for assenting to the bill seeking amendment to the 30 year old Companies and Allied Matters Act.

Buhari on Friday signed the bill into law after passage by both chambers.

Recall that the bill was passed in the 8th Assembly but was vetoed. In November 2019, Buhari forwarded it to the National Assembly for corrections to be effected.

Reacting to the assent, the red chamber in a statement on Saturday through its Spokesman, Ajibola Basiru noted that it demonstrates a cordial relationship between both arms of government in providing the needed legislative interventions for the resuscitation of the nation’s economy.

Speaking on the benefits of the bill, Basiru stated that it will “strengthen the legal framework for the incorporation of companies, limited liability partnerships, limited partnerships, registration of business names together with incorporation of trustees of certain communities, bodies, associations; and incidental matters to address several corporate legal innovations geared towards enhancing ease of doing business in Nigeria.

“It is not in doubt that the provisions of the repealed Act had become very obsolete and therefore could not effectively address challenges being faced by companies and incorporated trustees such as business rescue for insolvent companies and the merger of Incorporated Trustees for associations that share similar aims and objectives.

“It is gratifying to note that the new Act provides for innovating processes and procedures to ease the operations of companies, such as 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.

“Others include the disclosure of persons with significant control of companies in a register of beneficial owners to enhance corporate accountability and transparency.”

He assured that the 9th National Assembly will continue “to make laws for the ‘peace, order and good governance’ of the Federation and accord the executive the necessary legislative cooperation that will promote and sustain the well-being and security of the citizenry as well as the prosperity of Nigeria.”

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