September 1, 2020
A COMPREHENSIVE REVIEW OF THE COMPANIES AND ALLIED MATTERS ACT 2020
It came as great news indeed that President Muhammadu Buhari has finally signed the Companies and Allied Matters (Repeal and Re-enactment) Bill into law as the Companies and Allied Matters Act (CAMA) 2020 after what seemed like forever.1 The extant Companies and Allied Matters Act (CAMA) had been in operation for 30 years without any substantial improvement despite constant developments in the global corporate practice landscape, and had over time become outdated. This has inevitably presented obstacles to the seamless incorporation and operation of businesses in the country, especially when compared with what is obtainable globally.
The signing into law of the new CAMA is, therefore, undoubtedly one of the most impactful business/economic upheavals in the country in the past three decades.2 It will help to implement a catalytic modern regulatory framework for businesses while also improving the country’s ease of doing business and achieving global competitiveness in line with the Federal Government’s Economic Recovery and Growth Plan (ERGP 2017 – 2020) which targets Nigeria ranking in the top 70 in the World Bank’s Doing Business Index by 2023.3