Business Post Contributor
By Benita Ayo
A while ago, it was announced that certain companies would be struck off the corporate register of the Corporate Affairs Commission. The major reason for this is the failure of defaulting companies to file their Annual Returns with the commission.
I have always reiterated the fact that approval of an application to register a company does not signify that its officers can fold their hands and go to sleep.
There are bundles of requirements to be fulfilled by such companies one of which is the filing of its Annual Returns.
The Annual Return is a yearly account rendered to the Corporate Affairs Commission (CAC) outlining the performance of a company at the end of a financial year.
Companies which are in arrears or in default are placed on the red list and deemed inactive. These companies, after failing to comply with the requirement to file Annual Returns are thereby struck off the Corporate Register.
Implications of the Ongoing Exercise of Striking Off Companies From the Corporate Register
The general implications of striking off companies from the Corporate Register include the following;
- The companies cease to exist.
- The company or business loses out on lucrative business opportunities.
- The company’s name would be reassigned to another.
Conclusion
To ascertain the current status of your company with the Corporate Registry, you may reach me for further enquiries @WhatsApp: +2348063775768
Email: [email protected]
Benita Ayo is a Seasoned Corporate Commercial Counsel with over 9 years of post-call experience. She has handled myriads of briefs in Corporate/Commercial, Employment Law as well as Property Transactional Practice
