CAC Threatens To Delist 100,000 Companies Over Inactivity, Non-Compliance

The Corporate Affairs Commission (CAC) has issued a 90-day ultimatum to 100,000 companies facing delisting from its register due to prolonged inactivity and failure to comply with statutory obligations under the Companies and Allied Matters Act (CAMA) 2020.

In a public notice, the Commission stated that the affected companies have either not carried on business, remained inactive for at least ten years, or failed to meet key regulatory requirements, including the annual filing of returns and disclosure of Persons with Significant Control (PSC).

The move is part of the CAC’s ongoing efforts to sanitise Nigeria’s corporate registry, enhance compliance, and align with global anti-money laundering and transparency standards in corporate governance.

“It shall be unlawful for any company struck off the Register of Companies to continue carrying on business unless it is restored by an order of the Federal High Court,” the notice warned.

In order to avoid being delisted, the affected companies were advised to promptly regularise their status by filing all outstanding annual returns and, where applicable, send activation emails to [email protected] within the 90-day grace period from the date of the notice.

The Commission said the delisting exercise is being carried out under Section 692(4) of CAMA 2020, which empowers it to strike off companies that fail or refuse to comply with statutory filing requirements.

The CAC also recalled a similar compliance drive in July 2023, during which a notice of intention to delist inactive companies was issued.

Several were ultimately struck off in November after failing to respond within the stipulated timeframe.

“Companies stricken off the register are deemed to have been dissolved from the date of publication,” the statement added.

“It is illegal to enter into any transaction or deal with a company that has been dissolved.”