The 2019 Bill for the Amendment of the Companies and Allied Matters Act (CAMA) Lfn, 2004,: Quo Vadis

Abstract

The CAMA has become inconsistent with globalization. Some of its provisions has become moribund and need amendment. Also, the provision of the CAMA with regard to small companies is a setback on the government’s agenda for SME’s, therefore the need for an amendment. The bill to amend the CAMA is a brainchild of the recommendation of the Nigerian Bar Association section on Business Law and the Senate after a conceited deliberations of the above issues. On the 15th of May, 2018, the Nigerian Senate passed the Companies and Allied Matters Act, 2004 (Repeal and Re-enactment) Bill, 2018 into law. The amendment seeks to promote financial stability and to reduce the time and cost of setting up companies in Nigeria. Ultimately, the amendment is intended to address the shortcomings of the 28 year old CAMA and to promote the ease of doing business in Nigeria.It is believed that the amendment would serve as a catalyst that would propel the growth of small businesses and startups in Nigeria.Thus this paper is a detailed analyses of these amendments. The author wishes to articulate the essential contributions made by the bill, their effects, challenges and the way forward. It is the author’s target to proper educate both the masses and the law makers on the things to look out for in the Bill as well as make recommendations for a way forward.