Tuesday 15th of May, 2018, The Nigerian Senate made history with the passage of the repeal and re-enactment of the Companies and Allied Matters Act (CAMA) which the legislative body termed ‘the biggest reform bill in Nigeria over 28 years’.
It has been said that the CAMA bill passed by the 8th Senate on Wednesday is to empower the business world in Nigeria. As a result, there are 7 benefits of the bill passed and they are as follows;
1. It will make Nigeria’s business environment as competitive counterparts around the world.
2. One person can now open and run a company – unlike before where you needed two or more people. This is especially good for start-ups and young entrepreneurs.
3. It will allow business owners to now register their businesses in a faster and more efficient way – using technology.
4. The CAMA repeal and re-enactment also removes all the unnecessary regulatory provisions for small companies – such as the requirement for ‘annual general meetings’ and ‘company secretaries’.
5. The new CAMA will reduce the minimum share capital for all companies ad start-ups in Nigeria – which will encourage more investments and create new jobs.
6. It creates the ‘LLP’ (Limited Liability Partnership) which is a new form of legal identity for businesses – this is targeted at increasing foreign investment in Nigeria.
7. CAMA ensures that Nigerians can now register their businesses from anywhere in Nigeria through the E – registration system that the Senate’s ammendment gives legal backing.
Speaking on the passage of the new bill, the Senate President, Bukola Saraki on his Twitter handle said, “Today’s passage of the repeal and re-enactment of the Companies and Allied Matters Act is a significant milestone in our legislative agenda. This is by far the most far-reaching legislation ever passed by any legislature in our country.”