Regulation of Non-Governmental Organisations under the Companies and Allied Matters Act, 2020

Abstract

The Companies and Allied Matters Act, 2020 (CAMA 2020), seems to have revolutionized the face of corporate practice in Nigeria in recent times. The sweeping reforms enshrined in CAMA 2020 will undoubtedly accelerate economic growth and rapidly promote the ease of doing business in Nigeria. In one breath, the remarkable reforms entrenched in the Act, particularly with respect to incorporation, commencement operation of companies and business names, have been widely applauded by Nigerians. On the other hand, religious bodies, associations and other incorporated trustees (ITs) have heavily condemned some provisions in the Act, especially Part F that deals with operations of ITs and in fact some associations have called for an outright amendment of section 839 of the new Act because of the enormous powers given to the Corporate Affairs Commission (CAC) to suspend, remove and install interim managers for any incorporated trustee (IT) found wanting. This work examines the legal implications of the novel provisions embedded in CAMA 2020 as it relates to the regulation of ITs in Nigeria. A brief review is made of the Charities Act, 2011 of the United Kingdom (CA 2011), which appears to be the model for the controversial provisions CAMA 2020. The research methodology adopted in this article is doctrinal and comparative. This paper concludes that while accountability of ITs is desirable and expedient, the Commission should operate within the purview of the rule of law and eschew any tyrannical tendencies that will stifle legal operations of non-governmental organizations (NGOs) incorporated in Nigeria.