Last updated on November 29th, 2023 at 02:45 pm
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.
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
Full list of the CAC fines:
|Late filing of annual return for public company
|E.g NNPC Limited
|Late filing of annual return for a private company
|You could pay as high as the filing itself if you have backlogs of annual filing
|Late filing of annual return for small company
|This penalty applies to business names
|Late filing of increase in share capital of private company
|A 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 company
|Late filing of charges by a private company
|Late filing of charges by a public company
|Late filing of return of allotment by a private company
|Late filing of notice of change in shareholding
|To avoid this penalty, ensure to notify the CAC
|Late filing of return of allotment by public company
|Late filing of notice of change in registered address
|50.00 per day
|This penalty applies to director of the company, secretary and the company
|Late filing of annual return for Company Limited by Guarantee
|Late filing of other documents (miscellaneous)
|Late filing of statement in form of schedule 14 under section 553
|NGN100 per day
|This applies to each director, company secretary and company
|Late filing of notice of appointment of liquidator
|Late filing of notice of change of company name
|Late filing of notice in alteration of memorandum and articles of association
|Late filing of notice/deed of release
|Late filing of notice of changes in particulars of directors
|Late filing of resolution for winding up
|This fine applies for each director and the company secretary
It is important that foreign investors and indigenous businesses or companies in Nigeria know this and know what they are expected to do.
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.