BIGGEST REFORM IN NIGERIAN CORPORATE LAW:

Today, the amended Companies & Allied Matters Act was signed today by President Buhari.

Key reforms:
1. A company can now have only one shareholder
2. No need for company seal anymore
3. Incorporated Trustees (NGOs) can now merge

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4. Prohibits anyone from serving as director in more than 5 public companies
5. Electronic filing, share transfer & e-meetings for private companies
6. Introduces Limited Liability Partnerships (LLP) & Limited Partnership
7. Small companies no longer need to appoint auditors

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8. Authorized share capital replaced by minimum share capital
9. Provision for virtual Annual General Meeting
10. During incorporation, applicant can sign their statement of compliance (no need for lawyers)
11. Private companies no longer need to appoint company secretary

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12. Increased minority protection - firm can’t appoint director to serve as Chairman or CEO of private company (s. 265(6)
13. Reduction in filing fees for registrations a charge (now 0.35% of value of the charge)
14. Rescue provisions for insolvent and distress companies

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*slight correction on item 12.
S.265(6) says “The chairman of a public company shall not serve as the Chief Executive Officer of such company”