Buhari has made the biggest reform in Nigerian corporate law happen

Today, President Muhammadu Buhari signed into law the amended Companies & Allied Matters Act, 2020.

Key Reforms:

1. A company can now have only one shareholder.

2. No need for company seal anymore.

3. Incorporated Trustees (NGOs) can now merge.

4. Prohibits anyone from serving as director in more than 5 public companies.

5. Electronic filing, share transfer & e-meetings for private companies.

6. Introduces Limited Liability Partnerships (LLP) & Limited Partnership.

7. Small companies no longer need to appoint auditors.

8. Authorized share capital replaced by minimum share capital.

9. Provision for virtual Annual General Meeting.

10. During incorporation, applicant can sign their statement of compliance (no need for lawyers).

11. Private companies no longer need to appoint company secretary

12. Increased minority protection -
S.265(6) says “The chairman of a public company shall not serve as the Chief Executive Officer of such company”.

13. Reduction in filing fees for registrations a charge (now 0.35% of value of the charge)

14. Rescue provisions for insolvent and distress companies