By Fawaz Adebisi
The Corporate Affairs Commission (CAC) has issued a public notice, warning companies operating in Nigeria, their directors and officers, to comply with the requirement of filing annual returns with the Commission or face severe penalties.
The CAC, in a statement signed by its management, said it has observed a large scale non-compliance with this requirement by companies, despite the fact that the Companies and Allied Matters Act 2020 (CAMA) mandates them to do so every year.
According to the CAC, the Companies Regulations 2021 prescribe stiffer penalties than are currently applied by the CAC for non-compliance.
The CAC therefore announced that from 1st January 2024, it will commence the full application of the penalties provided by the Companies Regulations 2021 for non-compliance with this requirement.
This means that the CAC will impose fines on both the company and each of its directors or officers for failure to file annual returns.
The notice urges defaulting companies, their directors and officers, to take advantage of the window between the date of the publication and 1st January 2024 to comply with the requirement by promptly filing their annual returns with the CAC.
The notice also warns that the CAC will proceed against directors and officers of struck-off and wound-up companies for recovery of undischarged penalties against them.
The CAC therefore advised the public to visit its website or contact its customer service or helpdesk for more information and enquiries.
