The Corporate Affairs Commission ("CAC'') recently announced the upgrade of its website and online registration portal (''the Portal) to allow for the full automation of most of its services and processes. This means that post incorporation filing of company documents (to make changes to existing records with the CAC), can now be done online via the Portal.
Prior to this, post incorporation filings in respect of changes to the composition and structure of registered entities, were made by paying physical visits to the Commission's offices to file the relevant documents. These mandatory filings/updates include, but are not limited to annual returns, changes in shareholding/ownership, changes in directorship, increase/decrease in authorized share capital, changes in constitutional documents or other corporate details, and notice of winding up/cessation of business.
It is mandatory to file a notice of any of these and other changes with the CAC for record purposes, and to avoid payment of default fees and other penalties prescribed by the Companies and Allied Matters Act 2020 (CAMA).
All of these changes or filings can now be done via the Portal (https://post.cac.gov.ng/login).
The decision of the CAC to fully embrace the use of technology in carrying out its regulatory functions is a welcome development for Nigerians and compliance teams across sectors, as this will make it easier for all entities to comply with statutory obligations, save time and the costs associated with the previous manual process.
The need for automation cannot be over emphasized in the face of the Covid 19 pandemic and the limitations on social interactions and physical engagements at brick and mortar offices. To sustain this initiative, the CAC must ensure that its portals are user friendly and interactive, with effective customer support for users of the portal.
We believe that the level of compliance by registered entities in fulfilling their post incorporation obligations will improve with the automation of the process. However, the CAC must ensure that adequate measures are put in place to ensure the data and other information of companies and individuals in its custody are stored securely in compliance with relevant data protection regulations in the country.
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