The Companies and Allied Matters Act (CAMA) 2020 had been in the works for quite a long time before its introduction to the Nigerian Business Community as the most minute and finer details were being scrutinized and reviewed thoroughly.
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This was down to the fact that it was general knowledge that the CAMA 2020 once passed into law, would be the main provision for business activities in the country for quite a long time hence, it needed to be close to perfection and greatly rectify the longstanding issues and which the previous CAMA 1990 posed.
There are key differences between the previous act and this present one. The CAMA 2020 has been greatly lauded for chiefly making the ease of doing business so much better. One of the notable key provisions is Section 18 of CAMA 2020 which states that one person may form and incorporate a private company by complying with the requirements of CAMA 2020 in respect of private companies.
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The above provision is a big step in the right direction and a big plus for smallscale entrepreneurs (of which there is a great number) to exercise control and authority over the operation and management of their business. The merits of this provision cannot be overemphasized as it was not provided for in the previous CAMA 1990. The provision connotes that a single individual can successfully incorporate a new company. This greatly helps the sole proprietors, many of which are students in higher institutions around the country trying to run businesses while simultaneously schooling too. They will be enabled to enjoy the benefits of registering a company and being recognised as a corporate entity.
Another key advantage of Section 18 of the CAMA 2020 is that it makes it easier and more straightforward for talented youths who have great innovative ideas of putting it into action n with immediate alacrity. The incorporation of such a private company is helped massively by the fact that having a secretary is not mandatory anymore as provided for in the CAMA 2020 and also the minimum number of members in the company is now just one (1) for a private company as opposed to the former requirement of two (2). This helps the entrepreneur’s business to be up and running in no time as the requirements needed to register his business have been mitigated greatly.
Section 18 of the CAMA 2020 will help to combat greatly the high rate of unemployment in the country as it would encourage countless job seekers to stop waiting around to be employed and start up small scale businesses with huge potential and also great room for expansion as the business progresses. So many SMEs can now be formed without having to go through the rigorous process which the previous act stipulated.
As stated earlier, it is a step in the right direction and a big positive for the Nigerian business community.
@ifecollins, Thanks for sharing with us on @campusconnect, work on the use of markdown and your article is too short. Continue sharing your quality contents with us here we love and appreciate your effort ,Thanks
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