CAC’s diligence to discourage forgeries

Thanks to the Corporate Affairs Commission which has made it mandatory for Directors and Subscribers of companies filing for registration to submit recognized and acceptable form of identification.  These include photocopy of data page of International Passport, National Identity Card and National Drivers license.The initiative portends favourable environment for business and enterprise.  It is common […]

Thanks to the Corporate Affairs Commission which has made it mandatory for Directors and Subscribers of companies filing for registration to submit recognized and acceptable form of identification.  These include photocopy of data page of International Passport, National Identity Card and National Drivers license.
The initiative portends favourable environment for business and enterprise.  It is common knowledge that these efforts will reduce incidences of fake identities, fraudulent activities and check forgeries in corporate registration.
This writer had focused on this issue and measures by the Corporate Affairs Commission (CAC) because of the conviction that they would contribute to the much needed transparency in business transaction in the country.
A credible business environment will check business malpractices, attract investors and boost the economy.  These measures are therefore important and worth discussing at a time a new Government is just been ushered in under the leadership of an hardliner, Mohammed Buhari, as president.
Nigerians, irrespective of their backgrounds aren’t different in their opinions on corruption.  While they unanimously agree that corruption thrives in an unorganized environment, a setting where lack of due process, joblessness and poverty prevails,  it is practicable that checks put in place can address the menace.  It is common knowledge that corruption has caused huge losses, impinged on the nation’s growth process.
Leading experts in the area of trade and commerce postulate that monies amounting to several billions that would have accrued to government coffers as revenue has been lost to corruption.
However, one government agency, Corporate Affairs Commission (CAC), has risen to the occasion by blocking avenues through which phony Companies carry out their nefarious acts of siphoning funds from unsuspecting victims and sometimes deny government of its derivable revenues.  As part of the measures to check forgeries in the business environment, the CAC has also stepped up campaign against the operations of unregistered companies in the country.
It has collaborated with banks and other establishments to plug loopholes. As a matter of compulsion, CAC has put banks on alert to demand evidence of business registration with CAC before companies are allowed to open and operate accounts with them.  We heard from the grapevine that the Commission has further demanded that banks  ensure proper documentation of collaterals for facilities granted to corporate entities.
The order by CAC is not restricted to banks.  As a follow up on this, Federal government agencies have also been solicited in the same light to support the measures in the area of contract awards to sanitize the country’s business environment and make it safe for genuine business to operate.
Such firms seeking for contract awards are to show evidence of registration with CAC as well as the status of its filing in the area of Annual Returns. 
These are indeed measures put in place by the current leadership to curtail activities of fraudsters that specialize in swindling unsuspecting people as well as perpetuating corruption.  It will further curtail the nefarious trend of phony firms responsible for failed contracts.
While sounding a warning recently, CAC boss Alhaji Bello Mahmud noted that “CAC has observed that in spite of the establishment of its offices in all states of the federation and the new registration portal launched to ease the process of registration of businesses, many people still carry on business without registration.
Some other initiatives by the Commission as outlined by the Registrar-General include the commencement of the start-to-finish registration services in six(6) state offices.  Until July 2012, registration and generation of certificates of limited liability companies could only be carried out in the Head office in Abuja, consequently applications filed in all state offices were referred to the Head Office for processing.  With the decentralization, incorporation applications can be processed and certificates of incorporation issued to customers without recourse to the Head Office.
More insight into the CAC revealed that this start-to-finish registration of companies is obtainable at six of the offices outside Abuja, namely; Aluasa and Yaba offices in Lagos, Kaduna, Kano, Enugu and Port Harcourt.  The Start-to-finish service has enabled the Commission to achieve a 24hrs registration service in these state offices.  This service will be extended to other state offices in due course.
With the amendment to Companies Regulation 2012, the filing fees payable for registration of small and medium sized companies were reduced by 50% while large companies benefited from 25% reduction.  The reduction is aimed at encouraging small enterprises to formalize their registration and also improve Nigeria’s rating in the global competitiveness index.
In my opinion, unregistered companies will not pay Annual Returns, not pay tax and not contribute to the economy.   They are capable of killing the country’s investment drive and should be resisted at all cost.
A lawyer who transacts business at the CAC spoke on condition of anonymity, saying he welcomes the new measures put in place by the current administration of CAC “As they are meant to instill efficiency and curb corruption”.
Koko Amada, No. 22 Nyanya Road, FCT, Abuja