The Registrar General of the Corporate Affairs Commission, Mr. Bello Mahmud has said that 50,000 companies will soon delisted for failing to file their annual returns.
In an interview with News Agency of Nigeria, Mahmud explained that the defaulters will be delisted after due notification as prescribed by law.
He said “For the partial defaulters, we have decided to sweep their files under the carpet and deny them service until they update their annual returns records.
“Whenever they come to do any business with the commission like change of directors or increase in share capital, we won’t attend to them.
“This is one of the most appropriate steps we have now taken as punishment for those who haven’t filed.
“We are also going on enlightenment campaigns in electronic and print media as well as appointing revenue agents to go round and advise these companies to comply.
“We are going to make a publication and give the defaulters the last chance to file their returns, and if they fail to respond we will delist them.
“Delisting here doesn’t mean they are going forever. Some of them can go to court to say they are still in existence.
“If the court agrees with them, then they are required to update their records with the commission and pay the penalty fees before returning to business.’’
Section 370 to Section 378 of the Companies and Allied Matters Act (CAMA) 1990 states that every registered company is required to file its first annual return 18 months after registration, and not later than 42 days after holding its annual general meeting for the year.