Senate amends Nigerian companies law

The Senate on Wednesday passed a bill seeking to amend the Companies and Allied  Matters Act Cap. C20 Laws of the Federation, 2004.

The bill among other provisions, requires the Corporate Affairs Commission to subject the appointment of its chairman to Senate confirmation while also providing  for the appointment and functions of Secretary to the commission.

Apart from this, the amendment requies the commission to submit its annual estimates and reports to the National Assembly.

Chairman of the Senate Committee on Trade,  Senator Odion Ugbesia, while presenting highlights of the report for the consideration of the upper chamber,  explained that the major objective of the bill was to strengthen the CAC, which is a gateway to the nation’s economy.

He said the bill stipulates that the appointment of the commission’s board chairman and its members should reflect the federal character principles as provided in the 1999 constitution as ammended.

He said the bill recommends that the chairman of the commission shall be appointed by the President of the Federal Republic of Nigeria on the recommendations of the Minister of its supervising ministry.

He added that the chairman of the commission  “shall be a person who by reason of his ability,  experience or specialised knowledge of corporate, industrial,  commercial,  financial or economic matters of business or professional attainments would in his opinion be capable of making outstanding contributions to the work of the commission.”

The board, Ugbesia added, would have representative each from the business community appointed by the minister on the recommendations of the Nigerian Association of Chambers of Commerce,  Industries,  Mines and Agriculture.

He added that the legal profession,  accountancy profession, Manufacturer Association of Nigeria,  Securities and Exchange Commission,  and the ministries of Commerce,  Justice, Industry and the Registrar General of the federation would be represented on the CAC board.

Senate President, David Mark, who presided over the session, commended the committee for the coming up with amendments that would further strenghten the laws  guiding the operations of companies in the country.