Why are companies delisted?

Why are companies delisted?

July 23, 2019

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.
  • Why is mutual assent important in a contract?

    This is one of the key elements of a contract because is shows the meeting of the minds of both parties
  • If I have NAFDAC Registration number, do I still need SON registration number?

    SON Product Registration scheme is mandatory for all SON’s regulated products as mandated by SON Act 56 of 1971, 20 of 1984, 18 of 1990 as amended.

    This is irrespective of the registration done by NAFDAC
  • Can I use the data collected legally for one purpose for another purpose?

    No, you can’t use the data collected for one purpose for a different purpose.
  • What is the difference between licensing and assigning a patent?

    Licensing a patent means granting permission to another individual or association to make, use as well as sell the creation that has been protected by patent.

    A patent assignment on the other hand, is a finished exchange of patent rights starting with one individual then onto another person.
  • When can I start renewal of the registration of my product(s) with NAFDAC?

    You can start renewal 6 months to the date of expiry.
  • 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.
  • Does Trademark registration protect my website domain name?

    Yes, it does.
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