CAC To Remove Firms Over Failure To File Annual Returns

The Corporate Affairs Commission (CAC) has urged companies operating in the country to file in their annual returns as provided by the law or risk being delisted from its register.

Head, Public Affairs, CAC, Mr. Moses Adaguusu, told News Agency of Nigeria (NAN) in Abuja that the call became necessary in view of the need to keep the commission abreast of such companies that were still in operation or otherwise.

An annual return is a mandatory requirement every enterprise or incorporated trustees must file yearly by delivering to CAC a return in the prescribed form containing specified matters related to the organisation in accordance with Companies and Allied Matters Act (CAMA).

Adaguusi, who emphasised that the enforcement and monitoring department of the commission would intensify efforts to ensure compliance, however, urged firms to embrace voluntary compliance.

According to him, although we go out on enforcement, we are not going like task force because the economy is difficult, saying: “We want companies to embrace voluntary compliance so that there won’t be penalties.“Penalties run into millions of naira and that is enough to close a company.”He expressed concern that rather than comply with filing annual returns to the CAC, some companies seek for waiver on penalties.

According to him, in extreme cases, the commission considers waivers on penalty. He also pointed out that companies need to be up to date with CAC to enable them get registered with the Bureau of Public Procurement (BPP).