Senate Amends Law Regulating Nigerian Companies

The Senate, in less than 10 minutes, yesterday, passed a bill that seeks to amend the Companies and Allied Matters Act 2004.
The bill, sponsored by the Senate Leader, Abdullahi Yahaya, was read for the first time on December 10, 2019, and scaled second reading on February 27.
The bill seeks to provide for the incorporation of companies, limited liability partnerships, limited partnerships, registration of business names together with incorporation of trustees of certain communities, bodies or associations.
The Senate passed the bill in May, 2018, to, among others; make it possible for individuals to register their companies from any part of the world.
The bill came 28 years after the passage of the original Companies and Allied Matters Act and is expected to make Nigeria the best country in Africa to do business in.
It was transmitted in May but was not assented to by President Muhammadu Buhari.
In November, 2019, the president wrote to the Senate seeking an amendment to a section of the law.
In his letter, Buhari amended Section 26(5) of the law to preserve the powers of the Attorney-General of the Federation to approve the registration of companies limited by guarantee and reflect the ease of doing business principles in a veto order (1) of 2017 on the promotion of transparency and efficiency in the business environment.
Yesterday’s passage of the bill was moved by the Deputy Senate Leader, Ajayi Boroffice, who noted that the bill contains 869 clauses.
The lawmakers thereafter, resolved into the committee-of-the-whole to consider and pass the bill.
The Senate President, Dr Ahmad Lawan, suggested that the bill be considered by 50 clauses each, due to number of clauses.
Earlier, Yahaya had said that it seeks to provide an efficient means of regulating businesses, minimise the compliance burden of Small and Medium Enterprises (SMEs), enhance transparency and shareholder engagement and promote a friendly business climate in Nigeria.
It will enhance Nigeria’s business environment and make it competitive among its international colleagues and it is a good start for small companies and young entrepreneurs, given the provision for single ownership of small private companies, he explained.
He also said it will promote the use of technology and eliminate all unnecessary regulatory provisions for small companies.