CORPORATE AFFAIRS COMMISSION –EVERYTHING YOU NEED TO KNOW ABOUT CAC

The Corporate Affairs Commission (CAC) is regarded as Nigeria’s incumbent corporate registry set up vis-à-vis the Companies and Allied Matters Act (CAMA). Promulgated in 1990, CAMA was enacted as a basis for overseeing company establishment and management in Nigeria.

Prior to the establishment of the Corporate Affairs Commission, Company Registry –which regulated the administration of the defunct Companies Act of 1968 –was the body initially performing the corporate regulatory functions of present-day CAC.

Company Registry, which was a department in the Federal Ministry of Commerce and Tourism, failed to discharge its duties effectively. Therefore, it is notable that the establishment of CAC as an independent body was borne out of the need for an effective alternative to the previously existing Company Registry.

Under the leadership of its Registrar-General, CAC discharges its roles through authorized members of relevant associations including:

• The Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN)
• The Institute of Chartered Accountants of Nigeria (ICAN)
• The Nigerian Bar Association (NBA)
• The Association of National Accountants of Nigeria (ANA)

Functions Performed by the Corporate Affairs Commission

As per the provision of Section 7 of the Companies and Allied Matters Act (CAMA), the Corporate Affairs Commission is vested with the power to carry out the following functions:

1. 1. Establishment and maintenance of company office and registry in every of Nigeria’s 36 states wherein such office and registry are well equipped to perform the Commission’s duties, as provided under the Act or any relevant law
   2. Administration of the Act (CAMA) and the supervision/regulation of company establishment, incorporation, management and winding up
   3. Registration of Business Names and Incorporated Trustees
   4. The undertaking of activities considered relevant for the full implementation of CAMA’s provisions
   5. Providing a broad array of additional services
   6. The organization and conduct of inquiries into any company actions/relationships provided that such inquiries are in tandem with both public and shareholders’ interests
   7. Overseeing the initial stage of the accreditation process for authorized professionals and users of the Companies Registry. These professional users are precisely regarded as Chartered Secretaries, Lawyers and Chartered Accountants
   8. Provision of responses to grievances or questions relating to the services offered by the Commission
   9. Sale of the Commission’s statutory publications and forms
   10. Performing an oversight function over companies’ compliance with the provisions of CAMA

Types of Companies Registered by CAC

In tandem with the regulatory authority of CAC, only four types of companies can be established for the conduct of business in Nigeria. Therefore, CAC specializes in the registration of the following company types:

1. Public Limited Company (PLC)
2. Private Limited Company (LTD)
3. Unlimited Companies
4. Companies Limited by Guaranty

Conclusion

CAC sets a benchmark of 50 individuals as the maximum number of members for private limited companies whereas there is no limit to the number of individuals who can make up a public company. Also, for every of the four aforementioned company types, CAC stipulates the minimum membership of two individuals.