CAC threatens sanctions on firms without validated accounts

Factual Pursuit of Truth for Progress


By Francis Ogwo

Registered companies have been given till March 31 by the Corporate Affairs Commission (CAC) to validate their bank accounts or get sanctioned.

This was made known by CAC’s Registrar, General Garba Abubakar, on Monday in Abuja while briefing newsmen.

According to Abubakar, firms who have refused to validate their accounts will not be accredited and would have to go through a rigorous process of revalidation, after April 1.

Speaking further, he stated the needs by firms to update their information as the commission is considering an amnesty for a certain number of years on annual return filings, even though the details have not been completely worked out.

Garba Abubakar spoke extensively on the workings of the upgraded CRP, and enjoined the Commission’s accredited Customers “to strive to revalidate their account on the Portal before the end of March 2021 as that was necessitated by the fact that some customers were now deceased, changed details or their location without updating the database amongst others.”

He stressed that “any account not revalidated by the deadline will cease to have an effect by 1st of April, 2020 until the Customer comes forward to re-validate.”

Abubakar, however, said the right of public users to register companies on their own remains sacrosanct as there’s an interface for accounts by public users.

In conclusion, Abubakar noted that on the 1st of April, 2021, the commission will interface for the Registration of new legal entity types introduced by the CAMA 20 namely: Limited Liability Partnership LLP and Limited Partnership.


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