CAC goes tough on defaulting firms

by Agency Reporter

Companies and businesses that fail to comply with the provisions of the Companies and Allied Matters Act will soon face severe sanctions, according to the Corporate Affairs Commission.

The CAC said in a statement by its Director, Public Affairs, Mr. Churchill Williams, said it had set up a special enforcement committee, which had commenced the crackdown on such companies.

The special enforcement committee, according to the statement, has completed the first phase of the on-site examination exercise in the Federal Capital Territory and has visited various markets and shopping malls.

It has also held meetings with relevant organisations to sensitise members of the public on the post incorporation obligations of registered companies and the consequences of operating unregistered businesses.

The statement added, “A total of 474 companies were penalised for non-compliance during the exercise in the Federal Capital Territory. The next phase of the enforcement will be carried out in the 36 states of the Federation.

“Under the provisions of the Companies and Allied Matters Act, every company, business name and incorporated association/non-governmental organisation is required to file annual returns every year, which informs the commission of the status of a registered entity. Such defaulting companies face the risk of being struck off from the register of companies.”