Why over 44,000 companies were delisted from CAC database
The Corporate Affairs Commission (CAC) has disclosed its reasons for delisting over 44,000 companies. According to sources at the commission, it was based on an inordinate number of breaches against the Companies and other Matters Act (CAMA) amidst several other extant regulations of the commission, notably, late and outright refusal to file returns.
It announced that the first batch of delisted companies had been over nine thousand while the second batch came up to over 35, 000 companies totaling 44,000 firms delisted from its database. The commission stated that most of those delisted were ‘briefcase’ companies without legitimate addresses, noting further that it plans to continue the process until these sharp practices are totally eradicated.
The move by the CAC is part of efforts by the government to institute the Ease of Doing Business and enhance business practices across the country. These deceptive practices in the past hindered the development had resulted in the loss of revenue to the commission,
44,000 companies were recently delisted from the database of the Corporate Affairs Commission, CAC, while 1.5 million companies have been registered.
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