A review of the provisions of the Companies and Allied Matters Act 2020 and the companies regulation 2021

In 2020, the much-awaited Companies and Allied Matters Act 2020 (CAMA) was enacted. One of primary amendments introduced was the removal of the need for authorised share capital and replacement with a required minimum issued share capital. Section 27 of the Act also provides that a private company is expected to have a minimum issued share capital (MISC) of NGN100,000 (One Hundred Thousand Naira) while a public company ought to have NGN2,000,000 (Two Million Naira) MISC.

Furthermore, Section 124 (2, 3 and 4) of the CAMA provides that:
(2) No company having a share capital shall, after…