The Corporate Affairs Commission said that the recent repeal and re-enactment of the Companies and Allied Matters Act was done with the aim of protecting the Micro, Small and Medium Enterprise sector of the economy.
The Acting Registrar General, CAC, Azuka Obiageli, stated this on Thursday at the Lagos Chamber of Commerce and Industry stakeholders’ forum.
Obiageli, who was represented by the Head, CAC Lagos Island, Mr Tolulope Sonaike, said that the aim was to ensure a more appropriate regulation for the MSMEs that account for over 50 per cent of employment in Nigeria and believed by analysts to drive the economy.
She said, “Because of this factor, we decided that for the Act to have any meaningful impact on the MSME sector, it (MSME) should be represented on the committee and be part of the policymaking process.
“They had input at the point of formulating the policy and there is a provision in the Act that a representative of the MSME sector should be on the board of the CAC.”
Obiageli noted that the aim was also to ensure transparency, engage small shareholders more and operate in line with global best practices.
She said, “The law as it is cannot deliver on current demands for businesses. It is obsolete, inadequate and weak in several respects. The most important aim of the Act is to ease starting a business and to have an environment that encourages the growth of a business.”
In his remarks, the President, LCCI, Mr Babatunde Ruwase, observed that there were many provisions in the Nigeria’s laws not in tune with current realities.
He said, “Some of these provisions have been in our statute books for 30 years or more, and yet we are operating in a business environment which is very dynamic.
“Things are changing almost on a daily basis and shaping the way we do business. We cannot afford a static legislation in a dynamic investment environment.
“It is in this context that we would like to appreciate the National Assembly and other stakeholders in the private sector and civil society for their role in the review of CAMA.”