The Corporate Affairs Commission has threatened to sanction companies which failed to file their annual returns with the commission every year starting from January 1, 2024.
In a circular by the commission, it noted that the directors of such companies who failed to comply with the Companies and Allied Matters Act 2020 would be penalised.
The circular noted that the reminder to defaulted companies and their directors was informed by what the commission observed as large-scale non-compliance with requirements by the companies, despite the fact that the Companies Regulations 2021 prescribe stiffer penalties presently applied by the commission for non-compliance.
Annual Returns: CAC threatens sanctions by Jan 1 against defaulting firms, directors
The Corporate Affairs Commission has vowed to sanction firms who fail to file annual returns starting January 1
TOSIN AJUWON • NOVEMBER 4, 2023
Corporate Affairs Commission (CAC)
The Corporate Affairs Commission has threatened to sanction companies which failed to file their annual returns with the commission every year starting from January 1, 2024.
In a circular by the commission, it noted that the directors of such companies who failed to comply with the Companies and Allied Matters Act 2020 would be penalised.
The circular noted that the reminder to defaulted companies and their directors was informed by what the commission observed as large-scale non-compliance with requirements by the companies, despite the fact that the Companies Regulations 2021 prescribe stiffer penalties presently applied by the commission for non-compliance.
“In line with its statutory mandate, the commission shall from January 1, 2024 commence the full application of the penalties provided by the Companies Regulations 2021 for non-compliance with this requirement.
“As from that date, the penalties prescribed by the Companies Regulations against a company and each of its directors or officers shall be applied fully by the commission for failure to file annual returns.
“Defaulting companies, their directors and officers are encouraged to take advantage of the window between the date of this publication and January 1, 2024 to comply with the above requirement by promptly filing their annual returns with the commission,” the circular read in part.
It further stated that companies, their directors and officers should take note that henceforth, the commission would proceed against directors and officers of struck-off and wound-up companies for recovery of undischarged penalties against them.
