CAC set to delist 100,000 inactive companies, gives 90-day ultimatum

The Corporate Affairs Commission (CAC) has announced plans to delist over 100,000 companies from its official register due to prolonged inactivity and failure to comply with statutory requirements outlined in the Companies and Allied Matters Act (CAMA).

This move is part of the Commission’s ongoing efforts to cleanse Nigeria’s corporate database by ensuring that only active and law-abiding entities remain in the system. According to the CAC, the sweeping delisting exercise aims to promote a more transparent and credible business environment.

The initiative also aligns with Nigeria’s commitment to strengthening corporate governance and improving compliance with international anti-money laundering standards.

A public notice issued by the Commission said the affected companies have been identified as either not carrying on business, inactive for at least 10 years, or failing to meet regulatory obligations, particularly the annual filing of returns and disclosure of Persons with Significant Control (PSC).

The CAC has given a 90-day window from the date of publication for these companies to regularise their status.

However, to avoid being struck off, affected companies must promptly file all outstanding annual returns and send activation emails to [email protected] where applicable.

“It shall be unlawful for any company struck off the Register of Companies to continue carrying on business unless it is restored by an order of the Federal High Court,” the notice emphasised, reminding the public of a similar notice in July last year, where it delisted several companies in November.

The Commission emphasised that it invoked its powers under Section 692 (4) of CAMA 2020 to strike off companies that failed or refused to update their annual returns within the stipulated time frame. The delisted companies were deemed dissolved, effective from the date of publication.

“The General public may recall that the Commission issued a Notice of Intention to strike off the names of Companies which the Commission has reasonable cause to believe are not carrying out business or are otherwise dormant because of not filing Annual Returns for 10 years. Statutory Period of 90 days was given to such companies to file the requisite Annual Returns and send activation email to [email protected],” the Commission stated at the time.

“Companies stricken off the register are deemed to have been dissolved from the date of publication. It is illegal to enter into any transaction or deal with a company that has been dissolved,” the statement added.