38,000 Companies Delisted by CAC

The Corporate Affairs Commission yesterday announced that about 38,000 companies had their names removed from its register. According to the Registrar-General of the Commission, Mr Bello Mahmud, this was necessitated by the failure of these companies to file annual returns to the commission. What though does delisting a company mean for the entity?

All companies in Nigeria, private, public or limited by guarantee are expected to be registered with the Commission. In addition, notice of appointment of Secretary, current directors and current registered office address and annual returns of business activities are expected to be filed with the Commission.

Mahmud explained what the exact implications of the delisting of these companies as follows

What Delisting means

• Failure to adhere to these rules will be taken as an indication by the CAC that the company no longer carries out business.
• These companies no longer are regarded as legal registered entities and lose all privileges so accorded them by law.
• They cannot carry put business as legal entities in Nigeria

What Delisting does not mean

• It does not mean that the company has been liquidated or dissolved.
• It does not mean that their company names are immediately available as the law gives them 20 years to reapply for re-registration.