CAC Begins Striking Off 100,000 Companies – Act NOW or Lose Your Business!

The Corporate Affairs Commission (CAC) has just dropped a massive hammer, announcing plans to commence the striking off of a fresh batch of companies from its register!

Can you feel that urgency? This isn’t just about administrative tidiness; it’s about holding businesses accountable and ensuring compliance with the law. If your company has been dormant or non-compliant, your time is running out, and the consequences are severe!

The Compliance Crackdown: 100,000 Companies on the Chopping Block!

The CAC made this critical announcement on its Instagram page on Tuesday, leaving no room for ambiguity: the affected companies have simply failed to comply with the law. This isn’t a new threat; it’s a follow-through on previous warnings. Late last year, the CAC had already issued a notice of its intention to strike off the names of dormant companies that had not filed their annual returns for a staggering 10 years.

Now, the hammer is falling. In an Excel sheet attached to the fresh notice on its website, the Commission has published a list of approximately 100,000 companies! Yes, you read that right – one hundred thousand! These companies have been inactive for about a decade, with their incorporation dates spanning between 2002 and 2006. This massive list constitutes the fifth batch of companies facing this drastic action.

The official notice from the CAC is crystal clear: “The General Public is hereby informed that the Corporate Affairs Commission has commenced another round of striking off companies that have not complied with the provisions of the Companies and Allied Matters Act 2020 from the Register in accordance with the requirements of the Act.”

Your Last Chance: 90 Days to Comply!

This is your final call to action if your company is on that list! The CAC is giving a strict deadline: “The affected companies should note that any company that fails to comply with the provisions of the Act by taking steps to file its Annual Returns (and by extension Persons with Significant Control/Beneficial Ownership information) up to date within 90 days of this publication shall be struck off the Register.”

This means you have a limited window to rectify your non-compliance. It’s not just about annual returns; it also includes updating information on Persons with Significant Control (PSC) or Beneficial Ownership, a crucial requirement under the Companies and Allied Matters Act (CAMA) 2020, designed to enhance transparency and combat illicit financial flows.

The Grave Consequences: Losing Your Legal Right to Business!

The CAC is not mincing words about the severe repercussions of being struck off. They explicitly stated that it is unlawful for any company struck off the Register to carry on business, having lost the right over the entity.

Think about what that means:

• Loss of Legal Identity: Your company ceases to exist as a legal entity.
• Inability to Operate: You cannot legally conduct business, enter into contracts, or engage in any commercial activity.
• Legal Ramifications: Continuing to operate after being struck off can lead to serious legal penalties.
• Difficulty in Restoration: Reinstating a struck-off company is a complex and often costly legal process, usually requiring a Federal High Court order.

This aggressive move by the CAC is part of a broader effort to sanitize Nigeria’s corporate registry, ensuring that only active and compliant entities remain. It’s about promoting good corporate governance, transparency, and accountability in the business environment.

So, if you own a company, or are involved with one, and you suspect it might be on this list, do not delay! Head to the CAC’s website immediately, check the published list of affected companies, and take swift action to file all outstanding annual returns and update your information. This is your final chance to save your business from being permanently removed from the official register. The clock is ticking!