Home VOL. 6 (2020) Effectiveness of the Companies and Allied Matters Act, 2020 in Nigeria’s Quest...

Effectiveness of the Companies and Allied Matters Act, 2020 in Nigeria’s Quest for Foreign Investment

140

Abstract

The corporation is the major vehicle for driving economic activities within a given jurisdiction. Thus, corporate statutes in every jurisdiction provide for the regulation of corporate actors and relationships among corporate participants. Companies and Allied Matters Act (CAMA) 2020 is the primary legislation that regulates the operations of corporations in Nigeria. Shareholders are contributors to corporate capital and they are protected under corporate statutes. This paper argues that shareholders’ protection is imperative for attracting investment capital and identifies protection under corporate statutes and their enforcement is fundamental to the decision to invest. The paper investigates the provisions in the CAMA for shareholders/ investors protection. This investigation reveals a major gap in the disclosure rules. The paper contends that this gap and the acknowledged enforcement deficiency in the Nigerian justice system renders the current CAMA inadequate for protecting investors. The paper suggests amendment of CAMA to among other thing provide timelines for the speedy resolution of cases concerning shareholders’ rights.

Authors: Samuel E. Ojogbo