The Corporate Affairs Commission (CAC) has issued a stern warning to companies and business operators in Nigeria, mandating strict compliance with the Companies and Allied Matters Act (CAMA), 2020. The Commission cautioned that violators risk a two-year jail term and daily fines for non-compliance.
In a public notice released on Tuesday, the CAC emphasized that it is a criminal offence under Section 863 of the Act to operate a business without proper registration or to use a name or acronym different from that officially registered.
“All companies, Limited Liability Partnerships, Limited Partnerships, and business name operators must operate strictly under their registered names,” the Commission stated, adding that failure to comply would result in prosecution.
Businesses are also reminded of their obligations under Section 729 to clearly display their registered name and registration number at all business premises and on official materials such as signage, letterheads, and promotional publications.
Furthermore, the Commission warned that anyone who knowingly provided false information in official documents, as outlined in Section 862(1), may face imprisonment and additional fines.
The CAC has given a six-week deadline for full compliance with these provisions, warning that enforcement actions will follow for any defaulter.
“In view of the foregoing, every Company, Limited Liability Partnership, Limited Partnership and Business Name proprietor(s) is hereby required to ensure full compliance within six (6) weeks of this notice, failing which the Commission shall take all necessary steps, including prosecution,” the notice concluded.
Full Text of CAC Public Notice:
The Commission wishes to inform the General Public that it is a criminal offence under Section 863 of the Companies and Allied Matters Act, 2020 to carry on business in Nigeria as a Company, Limited Liability Partnership, Limited Partnership or under a Business Name without registration under the Act or by a name (or acronym) other than the name (or acronym) by which the business was registered under the Act.
The General Public should note that Section 729 of the Act requires every Company registered under the Act to state its name as registered and its registration number outside every place where it carries on business. In addition, the Company is required to state its registered name and registration number on all its official publications, including its letterhead, signage(s), marketing and publicity materials.
In particular, the General Public should note the provisions of Section 862 (1) of the Act which provides that any person who, in any document required by, or for the purpose of any of the provisions of the Act (including the aforementioned official publications of a Company), makes a statement which is false in any material particular knowing it to be false, commits an offence and is liable on conviction to imprisonment for a term of two years in addition to a daily fine against the Company for every day during which the offence continues.
In view of the foregoing, every Company, Limited Liability Partnership, Limited Partnership and Business Name proprietor(s) is hereby required to ensure full compliance with the above requirements of the Act within six (6) weeks of this notice, failing which the Commission shall take all necessary steps (including prosecution) to enforce compliance.
