Why are companies delisted?

Why are companies delisted?

October 19, 2018

All companies in Nigeria, asides being expected to be registered with the Corporate Affairs Commission (CAC), are mandated by the Companies and Allied Matters Act to file their annual reports with the commission.

The CAC has within the last couple of years, delisted thousands of companies due to irregular or non-filing of their annual returns.

Annual report is a comprehensive report on a company’s activities throughout the preceding year and it is a way of making the CAC aware that your company is still carrying on business.

As the name implies, it is expected by the commission to be filed annually, as it gives information regarding any post incorporation changes that have been effected by the Company. It is thus very important and continuous failure to adhere may be taken as an indication by the CAC that the company no longer carries on business and may therefore result in the company being struck off /delisted from the register of members.

EFFECTS OF BEING DELISTED

  • These companies no longer are regarded as legal registered entities and lose all privileges so accorded them by law.
  • They cannot carry on business as legal entities in Nigeria

Note that Companies that have been delisted have a grace period of 20 years within which to register before they will be regarded as being automatically dissolved.

Do you have any question or clarification regarding the topic in this post that was not answered / provided by this post? Or you have questions regarding what the law states about a particular legal issue? Log on to our website – www.618bees.com or call us on 23412803791 to speak to any of our consultants that are always on hand to provide answers to such questions.

Best Regards,

Team 618 Bees

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer.

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Frequently Asked

  • When are Annual Returns due for filing?

    A company’s first Annual Returns are due for filing after 18 months of its inception, subsequently it should be filed annually as the name implies. The filing dates could differ for each company depending on their financial year end but must be filed not later than 42 days after its Annual General Meeting.

    The Annual Returns for Business Names is due not later than the 30th of June each year except in the year the business was registered.
  • Must my Company Secretary be a Lawyer?

    Although it’s ideal to have a lawyer as a company secretary, it is not compulsory for small private businesses.
  • What are the benefits of Registering with SON?
    1. Product traceability in the Nigerian market
    2. Detection of counterfeit products
    3. Barriers to the circulation of substandard goods
    4. The official SON Product Registration Logo and number are displayed on registered products.
  • Can a minor be a company director?

    No, a minor cannot be a director. A minor under Nigerian Law is anyone who is below 18 years of age.
  • Why do I need a trademark?

    You need to register your trademark because if you don’t register it, someone else can! It helps identify you as the source ad indicates a consistent level of quality of your products and services. Securing a registered trademark protects your brand, and provides you with tools to prevent someone else from using similar signs and riding off the back of your business.
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