The Corporate Affairs Commission (“CAC”) recently released a notice dated 28th December 2023 with respect to extension of time for full application of penalties on directors and officers of companies that default in filing their Annual Returns.
Additionally, the issued notice also included that the penalties would be applicable to other entities registered under the Companies and Allied Matters Act (Limited Liability Partnerships, Limited Partnerships, Business Names, and Incorporated Trustees).
The Commission’s recent notice expressly states that, effective 1st April 2024, the full application of the penalties provided by the Companies Regulations 2021 for non- compliance shall be applied on companies, directors, or officers of the companies, business names, partnerships, and associations/NGOs in default.
Also, recall that the CAC had commenced the striking-off process for companies in default of annual returns for over ten (10) years. The Commission expressly stated that the extension of time would not affect the striking-off proceedings commenced prior to the publication of 2nd November 2023 as the Commission shall proceed against officers of struck-off Companies for recovery of undischarged penalties against them.
Accordingly, defaulting companies, business names, partnerships and associations/NGOs are therefore urged to take advantage of the further moratorium offered by the CAC to comply with the provisions above promptly.
Should you have any questions regarding the foregoing alert, please do not hesitate to contact Chris Ogunbanjo Nominees Ltd (CONL) as follows:-
Omowunmi Sanni (Mrs.)
Managing Director, Chris Ogunbanjo Nominees Limited (CONL)
Senior Associate, Chris Ogunbanjo Nominees Limited (CONL)