CAC Disclaims Threat To ‘Delete Corporate Entities For Failure To ‘Validate’ Account

— Says Commission Has No Power To ‘Delete’ Any Corporate Entity
Under CAMA, 2020

The Corporate Affairs Commission has issued a disclaimer with
regards a tabloid news making rounds on social media, that the
commission has threatened to ‘delete and deem as non-existent’ any
Company, Business Name, or Incorporated Trustee who fails to
‘validate’ its account on or before the 31st of March, 2021.

The Commission also described as false the directive in the said
write-up noting that the validation is expected to be done using a
paid service on search.cac.gov.ng and any feedback to be sent to
spu@cac.gov.ng.

In a statement made available to TheNigerialawyer, the CAC
affirmed that corporate entities cannot be ‘deleted by the
commission as such would be against the ‘letter and spirit’ of the
Corporate And Allied Matters Act, 2020, noting that any form of
dissolution or removal of any business name from its register can
only be done in accordance with the provisions of CAMA, of which
deletion isn’t a part of.

“The Commission wishes to state categorically that it did not
issue or direct the use of any request for Companies, Business
Names or Incorporated Trustees to “validate” their accounts with
the commission. Further, the Commission does not “delete”
registered entities.

Companies and Incorporated Trustees may only be dissolved [with
or without liquidation] and Business Names removed from the
Register only in accordance with the procedure prescribed in the
Company And Allied Matters Act [CAMA], 2020, and none of these
procedure includes “deletion”, the statement reads in part.

However, the CAC pointed out in the said statement that the
directive which the commission had on the 11th of January, 2021,
released was it regards the need for corporate entities to confirm
their current Information with the commission via
https://search.cac.gov.ng^[1] using the
paid service interface and further any feedback to spu.cac.gov.ng.
and the need to confirm the status of such corporate entities was
based on the annual return filings and nothing more.

The CAC however advised its customers to always confirm any form
of information from the official website of the Commission,
www.cac.gov.ng^[2]

— Says Commission Has No Power To ‘Delete’ Any Corporate Entity
Under CAMA, 2020

The Corporate Affairs Commission has issued a disclaimer with
regards a tabloid news making rounds on social media, that the
commission has threatened to ‘delete and deem as non-existent’ any
Company, Business Name, or Incorporated Trustee who fails to
‘validate’ its account on or before the 31st of March, 2021.

The Commission also described as false the directive in the said
write-up noting that the validation is expected to be done using a
paid service on search.cac.gov.ng and any feedback to be sent to
spu@cac.gov.ng.

In a statement made available to TheNigerialawyer, the CAC
affirmed that corporate entities cannot be ‘deleted by the
commission as such would be against the ‘letter and spirit’ of the
Corporate And Allied Matters Act, 2020, noting that any form of
dissolution or removal of any business name from its register can
only be done in accordance with the provisions of CAMA, of which
deletion isn’t a part of.

“The Commission wishes to state categorically that it did not
issue or direct the use of any request for Companies, Business
Names or Incorporated Trustees to “validate” their accounts with
the commission. Further, the Commission does not “delete”
registered entities.

Companies and Incorporated Trustees may only be dissolved [with
or without liquidation] and Business Names removed from the
Register only in accordance with the procedure prescribed in the
Company And Allied Matters Act [CAMA], 2020, and none of these
procedure includes “deletion”, the statement reads in part.

However, the CAC pointed out in the said statement that the
directive which the commission had on the 11th of January, 2021,
released was it regards the need for corporate entities to confirm
their current Information with the commission via
https://search.cac.gov.ng^[1] using the
paid service interface and further any feedback to spu.cac.gov.ng.
and the need to confirm the status of such corporate entities was
based on the annual return filings and nothing more.

The CAC however advised its customers to always confirm any form
of information from the official website of the Commission,
www.cac.gov.ng^[2]