The Lagos Chamber of Commerce and Industry [LCCI] has commended the National Assembly for passing the Companies and Allied Matters [CAM] Bill 2018.
The Chamber also stressed the importance of President to expeditiously assent to the bill in view of its immense potential impact in catalyzing the growth and transformation of the MSMEs in the Nigerian economy.
The Companies and Allied Matters Act 1990 is the extant legislation governing business registration and related issues in the economy.
The Act is a twenty-nine year old legislation governing businesses in 2019. Many of its provisions are obviously not in tune with current realities of the business environment. The CAM Bill 2018 is therefore a laudable move to make the legislation more contemporary and also bringing it in alignment with the Ease of Doing Business Agenda of the present administration.
Muda Yusuf the director general, DG of LCCI who made the call reminded the president that the Bill if signed into law will among other things makes it possible for a company promoter to establish a private company with only one shareholder.
Ir will also review of the concept of Authorized Share Capital to be replaced with Minimum Share Capital, thus saving the promoters the trouble of having to pay for shares not needed at a specific time.
Yusuf further observed that it will enable simplification of the processes for the registration of Private Company Limited by Guarantee, broaden the scope for technology applications in compliance processes.
The CAM Bill 2018, according to him, has provisions for electronic filing; electronic share transfer and e-meetings for private companies abd this would make the processes smarter and cost effective.
“The Bill when signed into law, will reduce the cost of doing business, especially for small businesses; boost the growth of SMEs; promote economic inclusion, boost job creation by small businesses, and encourage informal sector players to relocate to the formal sector”, he said.
He said it was in the light of the huge potential benefits of this law, that the Chamber is canvassing that the bill be expeditiously signed so that the SMEs in the economy can begin to reap the benefits of its provisions. The Presidents assent to this bill would also position the SMEs in the economy to contribute to the realization of the objectives of the Economic Recovery & Growth Plan (ERGP), Yusuf added.