News have it that out of the 1.5 million companies registered with the CAC, an upward of 44,000 companies are being delisted from the database of the Corporate Affairs Commission, in an ongoing exercise aimed at weeding out inactive companies.
The Registrar General of the CAC, Bello Mahmud, disclosed this in an interview with the Economic Confidential in Abuja. He said the development owed to several breaches of the Companies and other Matters Act, CAMA, and other extant regulations of the commission, most especially, late and outright refusal of the affected companies to file returns.
“So far there is an improvement and a current ratio of 45 percent. We are still checking on company records especially in terms of compliance for those who have not been filing. If we discovered that you are dormant, the law establishing us gives us the power to delist you from our database,” he said.” “If we, also, discovered and write you the first, second and third letters without replies, we reserve a right to delist you from our database– since you are out of communication. So far, the first batch of companies we delisted were about nine thousand (9000), and in the second batch, about thirty-five (35,000); totalling 44,000 firms were delisted from our database. This process continues relentlessly,” Mahmud said.
Mahmud expressed his disappointment on the fact that many of these affected companies are only “brief case” companies — they do not have credible and traceable offices, hence fraudulent in nature. This process is likely to end-up in the delisting of several other companies who have not been functioning, and have also fallen-out of communication with the CAC. The next batch of delisted companies shall confirm the figure.
In view of this development, we advise you to file updated annual returns of your company with the CAC in order to safeguard your company. You can either do this yourself or seek professional assistance.