The Corporate Affairs Commission (CAC) has issued a stern warning to over 100,000 inactive companies registered in its database, threatening to delist them for failing to meet their obligations as required by the Commission.
During a workshop organized in Kano to educate civil society members, the media, and security agencies on the Beneficial Ownership Register’s use, Registrar General Garba Abubakar made this announcement.
Abubakar asserted that the names of the non-compliant companies would be made public on the CAC’s website, and the offenders would have a four-week grace period to comply. Failure to adhere to the ultimatum would result in these companies being “struck off from the register.”
Elaborating on the consequences, Abubakar stated, “The law is clear. Any company that remains inactive or fails to file its returns and meet its obligations for ten consecutive years is liable to be struck off the register.”
He further disclosed that the Commission had already compiled a list of the first 100,000 companies at risk, which would be published on the website within the week.
“In case of delisting, the company’s assets will be forfeited to the government. However, there is an opportunity for them to reapply and be relisted. Failure to re-list within the next ten years will lead to permanent asset forfeiture,” warned Abubakar.
Addressing concerns about fraudulent information during registration, he highlighted that providing incorrect details could result in a two-year jail term. Abubakar emphasized the importance of accurate information to curb corruption and illicit financial activities carried out through corporate entities.
The Beneficial Ownership Register aims to uncover the true owners and controllers of companies, assisting investigative agencies in their pursuit of transparency and accountability.
To ensure compliance, Abubakar added, “If a company fails to provide correct information about its ultimate controlling individuals at the time of registration, it is considered a criminal offense attracting a two-year jail term. Additionally, any delays in providing the required information will incur a daily default penalty, with a minimum fine of N10,000 per day.”
The CAC’s proactive measures and strict enforcement aim to promote corporate responsibility, transparency, and accountability in Nigeria’s business landscape.
