COMPARATIVE APPRAISAL OF NIGERIA’S COMPANIES AND ALLIED MATTERS ACT 2020 WITH SOME SELECTED JURISDICTIONS

Abstract

Corporations are key players in the pursuit of economic development; hence the role of the law is to ensure that there is an enabling environment to promote business continuity toward economic development sustainability. In Nigeria, the principal company legislation is the Companies and Allied Matters Act (CAMA), and after subsisting for 20 years, the Nigerian legislature revised the Act in 2020. This paper adopts an analytical approach by relying on both primary and secondary data in reviewing this Act with the aim of ascertaining whether it is an innovation or a mere revision. It examines its impact on corporate governance practice in Nigeria vis-a-vis the need to align with international best practices in corporate law practices. The paper examines the challenges that might confront the implementation of the Act and leeway. The status and powers of the Corporate Affairs Commission (CAC) and matters arising therefrom are also discussed. The paper identifies a dearth with reference to matters on stakeholder considerations, single shareholders, powers of the CAC with respect to the suspension of trustees, and the appointment of interim manager, as well as pre-incorporation contracts. The paper concludes with recommendations that are proffered in light of what applies in other jurisdictions as well as with respect to the peculiarity of the Nigerian situation.