The Corporate Affairs Commission (CAC) has given over 91,000 dormant companies a 90-day grace period to file all their outstanding annual returns or risk being delisted from its register.

Details of the Announcement

The affected companies are those that have not filed annual returns for a period of ten years. This was disclosed by the CAC in a statement published on its website on Wednesday. The statement was tagged “NOTICE OF INTENTION TO STRIKE OFF COMPANIES FROM THE REGISTER.”

Annual Returns from Dormant Companies

According to the statement, all dormant companies over the last ten years are due for delisting in line with Section 692 (3) (4) of the Companies and Allied Matters Act No. 3 of 2020. Section 692 of the Companies and Allied Matters Act, 2020 (CAMA) mandates the CAC to strike off the name of a defunct company from the Register of Companies.

The CAC advised affected companies to file their annual returns to avoid being delisted. An annual return is a yearly payment every registered company or Non-Governmental Organization (NGO) is required to make to the CAC irrespective of the state of its business transactions. Nairametrics checks on the defaulting companies on the CAC website showed there are over 91,000.

The statement partly reads:

“This is to inform the General Public that the Commission, pursuant to its powers contained in Section 692 (3) (4) of the Companies and Allied Matters Act No. 3 of 2020, intends to strike off from the Register names of defunct or dormant companies that have not filed Annual Returns for a period of 10 years.

“A full list is published on the Commission’s website www.cac.gov.ng.

“These companies are given a period of 90 days from the date of this publication to file all outstanding Annual Returns and send an email of this fact to activation@cac.gov.ng so as to remove their names from the list.”

Legal Implications

The CAC urged stakeholders to note that it is illegal to carry on business with the name of a company that has been delisted from the register, as such a company is deemed to be dissolved.

Back Story

Eight months ago, Nairametrics reported that the CAC had disclosed its intention to delist 91,843 companies from its register for failing to file their annual returns.

In an update on December 5, 2023, the CAC stated:

“Further to its earlier notice of the commencement of striking off the names of Companies from the Register of Companies and published on August 2, 2023, the Commission hereby notifies the General Public that the list of Companies that have failed to comply with the provisions of the Companies and Allied Matters Act 2020, to file up-to-date annual returns is now ready for publication in accordance with the provisions of Section 692 of the Act.

“Companies who filed complete annual returns in response to the earlier publication are advised to confirm removal from the list of Companies to be struck off. The updated list for publication is available on the Commission’s website.”

The CAC stated that any business that filed full annual returns but is still on the list should email compliance@cac.gov.ng within 30 days with proof that it did file.

It also clarified that a company whose name has been removed from the register of companies cannot conduct business until the Federal High Court orders that its name be added back to the register.

What You Should Know

The substantial reimbursement will support state governments and the FCT in tackling the urgent challenges of poverty. It will also enhance efforts to improve the livelihoods and resilience of the poor and vulnerable segments of the population. Dr. Obaje stated.