Corporate Affairs Commission (CAC) is an independent statutory body established to regulate and monitor the activities of companies registered in Nigeria to ensure that these companies function as responsible institutions and operate based on legal and ethical principles. This article will give you an insight into what the Corporate Affairs Commission is, its functions, who will be subject to them, how the CAC can enforce them and how your business should take advantage of the opportunities that come with operating within the country’s capital market.
What is Corporate Affairs Commission Nigeria?
Corporate Affairs Commission is an independent statutory body established to regulate and monitor the activities of companies registered in Nigeria to ensure that these companies function as responsible institutions and operate based on legal and ethical principles.
It was created by a statute of the National Assembly passed in 1991. The commission is directly accountable to the President through the Minister of State for Planning. The Corporate Affairs Commission has a broad range of functions, including:
- Regulating companies’ financial operations
- Supervising compliance with the Companies Act 2014
- Regulating company directors’ duties and responsibilities
- Implementing and administering market access for foreign investors
- Monitoring the securities markets for insider trading
- Enforcing compliance with various corporate governance codes
- Maintaining public records relating to companies in Nigeria
Functions of Corporate Affairs Commission Nigeria
The functions of the corporate affairs commission in Nigeria include the following:
- Regulating the activities of companies in Nigeria to ensure that they function as responsible institutions and operate based on legal and ethical principles.
- Monitoring, investigating, and sanctioning companies that are not complying with laws – Promoting fair competition in the economy.
- Encouraging the growth of small and medium enterprises (SMEs) through regulatory support for SMEs
- Helping regulate industry sectors, such as oil and gas, banking, securities, infrastructure, and real estate.
- Conducting market surveillance investigations into trends in capital markets and other relevant sectors
- Improving access to finance for SMEs. The Corporate Affairs Commission is responsible for regulating businesses registered with it. This includes firms with paid-up capital of more than N100 million or any company with 25 or more employees.
- It regulates several industries, including oil and gas, banking, securities, infrastructure, and real estate.
Who is subject to Corporate Affairs Commission Nigeria?
Corporate Affairs Commission is an independent statutory body established to regulate and monitor the activities of companies registered in Nigeria to ensure that these companies function as responsible institutions and operate based on legal and ethical principles. It comprises corporate affairs commissioners appointed by the president, who supervises compliance with securities law and other legal requirements. Also, the commission has not only enforcement powers but also discretionary functions related to registration and supervision, including;
- Reviewing the register of company directors
- Issue directions or take enforcement action against companies for breaches of security law; · investigate matters relating to illegal trading activities.
- Investigating complaints from investors about listed companies, directors or officers
- Approve certificates issued by auditors
- Approve advice under the Code
- Conduct public inquiries into non-compliance with securities law.
What Is CAC Eligibility?
To be eligible to register with the Corporate Affairs Commission, you should be able to meet specific requirements established by the commission. These requirements include:
- Registering your company with the Securities and Exchange Commission (SEC)
- Being a member of an association recognized by the Commission
- Having at least one person with requisite experience serving as an officer or director
- Having your company’s memorandum and articles of association approved by the commission
- Filing reports on your company’s financial results, business transactions, and other activities.
How Do I Become a Corporate Affairs Commission Agent?
To become a Corporate Affairs Commission agent, you need to meet the following requirements:
(i) You must be at least 18 years of age;
(ii) You must not have been convicted of any criminal offence and be of sound mind;
(iii) You need to have studied law or in some instances, law graduates will be required to have an LLM degree in any law and/or business discipline from an accredited institution as recognized by the Nigerian Law School Council (NLSC);
(iv) You must have passed the Nigerian Bar Association mandatory bar examinations conducted by the Nigerian Bar Association.
Who Is the Head of the Corporate Affairs Commission?
The Chairman, the head of CAC, is Hon. Ademola Seriki. The chairman of CAC has a wide range of responsibilities in overseeing the activities of companies registered in Nigeria. The chairman is responsible for regulating and monitoring the activities of companies within and outside Nigeria that are registered and those that still need to be registered with the commission. In addition, the commission also has specific powers over companies that do not comply with its regulations, including powers to order their suspension or cancellation.
Now that you have some information about the CAC, I recommend you proceed to learn how much it costs to register your company with the CAC.