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20 CAC Penalties Imposed On Erring Companies In Nigeria

Last updated on November 29th, 2023 at 02:45 pm

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The Corporate Affairs Commission (CAC) has laid down rules on the management of the details of company or business data. As a company, you’re expected to file a notification of any change whatsoever with the commission.

The Company and Allied Matters (CAMA 2020) specifically spells out what a company should do at the end of the financial year or when there is a change of baton in the leadership of an incorporated company.

When these conditions are not met, it is one of the roles of CAC to impose penalties to serve as deterrence.

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Understanding CAC Penalty

The penalty imposed by the Corporate Affairs Commission is a fine of money that the commission decides has to be paid for failing to abide by the guidelines of a company or business name registration.

The commonest of these fines are late filing of annual returns and late filing of a notice of change of company name, but there are 18 other CAC penalties that apply when a company or business is found “guilty” of contravening the guidelines of the commission.

Other ones include:

  • Late filing of resolution for winding up
  • Late filing of notice/deed of release
  • Late filing of an increase in the share capital of a public company
  • Late filing of a notice of change in shareholding
  • Late filing of a notice of change in the registered address
Also Read:  Requirements and Cost of Filing Annual Returns in Nigeria

Full list of the CAC fines:

OffenceFees (N)Comment
Late filing of annual return for public companyNGN10,000/yearE.g NNPC Limited
Late filing of annual return for a private companyNGN5,000You could pay as high as the filing itself if you have backlogs of annual filing
Late filing of annual return for small companyNGN3,000This penalty applies to business names
Late filing of increase in share capital of private companyNGN5,000A private company is expected to notify the CAC when there is an increase in share capital
Late filing of increase in the share capital of a public companyNGN10,000 
Late filing of charges by a private companyNGN5,000 
Late filing of charges by a public companyNGN10K 
Late filing of return of allotment by a private companyNGN5,000 
Late filing of notice of change in shareholdingNGN5kTo avoid this penalty, ensure to notify the CAC
Late filing of return of allotment by public companyNGN10,000 
Late filing of notice of change in registered address50.00 per dayThis penalty applies to director of the company, secretary and the company
Late filing of annual return for Company Limited by GuaranteeNGN5K/year 
Late filing of other documents (miscellaneous)NGN5,000 
Late filing of statement in form of schedule 14 under section 553NGN100 per dayThis applies to each director, company secretary and company
Late filing of notice of appointment of liquidatorNGN5,000 
Late filing of notice of change of company nameNGN5,000 
Late filing of notice in alteration of memorandum and articles of associationNGN5,000 
Late filing of notice/deed of releaseNGN5,000 
Late filing of notice of changes in particulars of directorsNGN5,000 
Late filing of resolution for winding upNGN500This fine applies for each director and the company secretary

Wrapping Up

It is important that foreign investors and indigenous businesses or companies in Nigeria know this and know what they are expected to do.

Also Read:  Cost of SCUML Registration in Nigeria And The Required Documents

In most cases, a company could be delisted by the commission when the company has a backlog of filing returns.

These penalties are monies paid for the violations of guidelines establishing CAC. It’s better to comply with the guideline than pay fines. The payment goes directly to the Federation Account which is paid via remita.

Author

  • InfomediaNG

    The Infomediang Team comprises a group of researchers, data analysts, and financial experts who closely follow government policies and spending. Our passion lies in empowering people to make informed decisions about their investments by simplifying data for easy understanding. Find us @infomedia_ng on X.

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