An online forum organised by Exponential Consult Limited and Centre for Law and Business has called for more discussions on the impact of Companies and Allied Matters Act (CAMA) 2020 on entrepreneurship development in Africa.
The event was attended by senior officials from the government, financial institutions, the private sector, as well as practitioners and experts.
CAMA 2020 has generated controversies at various fora and among operators in the Small and Medium Scale Enterprises (SMEs) sector.
The Managing Consultant, Simply Exponential Consult Limited, Mrs Fayo Williams, explained that it was important for operators in the SME’s sector to understand the benefits of the finance law and how it affects their businesses.
The Assistant Director, Corporate Affairs Commission (CAC), Mr. Tolulope Sonaike, said one of the benefits of the Act is incorporating e-meeting.
He said the Act makes it compulsory for the disclosure of persons with significant control of companies to enhance corporate accountability and transparency. He explained that some innovative processes and procedures were included in the new document to ease the operations of companies. Some of them are the introduction of Statements of Compliance, which replaced “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.
The Executive Director, Fate Foundation, Mrs Adenike Adeyemi , explained that several entrepreneurs needed to be enlightened on the Act to enable them make informed decisions about corporate governance. She urged small businesses to study and understand the amended Act, and wait for its gazetted copy before making changes.
She tasked entrepreneurs to seek professional advice on the Act.
CAMA 2020 is expected to enhance the ease of doing business in Nigeria. The new document has replaced the CAMA 1990 with key amendments that would remove some bottlenecks from the old act.