CAC DISCLOSES IT'S INTENTION ON FULL RECOVERY ON PENALTIES COMPANIES IN DEFAULT OF ANNUAL RETURNS FILINGS.....

Dear CEO/Business Owner,

Did you see the public notice from the Corporate Affairs Commission dated 2nd of November 2023?

If you didn't, then let me bring it to your notice.

I understand that you are very busy with marketing, branding and advertising your business so I am here for you. To give you the latest information about the legal compliant status of your business and off course how to protect your business from legal issues.

Enough stories...

On the 2nd of November 2023, the Corporate Affairs Commission issued a public notice in respect of companies in default of their Annual returns filings. This notice is for Companies that have refused to file their annual returns and also for those that are not aware of annual returns filings..

Let me explain what annual returns is.

Annual returns is a COMPULSORY yearly filing that must be done by all registered entities with the Corporate Affair Commission to the Corporate Affairs Commission. This filing is not tax and it is just an indication to the CAC that the entity is still in operation. You can read more about annual returns in this ARTICLE and this ARTICLE

There are so many consequences for not filing your entities annual returns as at when due and one of it is payment of penalty. For a Company, this penalty applies to both the company, its director(s) and its officer(s).

Now let me tell you what this public notice is saying in simple words:

1. The CAC have observed a large scale non-compliance of filing of annual returns. This means that there are lots of companies that have refused to file their annual returns despite the stiffer penalty prescribed by the Company regulations 2021.
2. The CAC have now decided to fully apply the penalties prescribed by the Company regulations 2021 on registered entities that have not complied with the requirements from January 1st 2024. I will do a post on these penalties in a new post...
3. The CAC advised the defaulting companies to take advantage of the time between 2nd of November 2023 to 31st of December 2023 to comply with this requirement. This means that there is still time for you to file your companies annual returns to avoid these penalties.
4. Also the CAC shall proceed against Director(s) and Officer(s) of struck-off or wound-off companies to recovery undischarged penalties. This means that wound off companies and companies that have been struck off would not also escape the wrath of the Commission. So if you feel that you can escape it because your company have wound up of have been struck up, then you are wrong.

What does all these tells us?

BE COMPLIANT WITH GENERAL AND SPECIFIC REGULATIONS GUIDING YOUR COMPANIES AND BUSINESS OPERATION.

NO MATTER HOW LONG, THE HANDS OF THE LAW WILL CATCH UP WITH YOU.

I understand that some business owners might not be aware of all these regulations, that is why i advise you to SUBSCRIBE TO THIS NEWSLETTER to get first hand information on HOW TO LEGALLY PROTECT YOUR BUSINESS FROM LEGAL ISSUES..

LET ME HELP YOU FILE YOUR ANNUAL RETURNS BEFORE 31ST DECEMBER 2023.

SEND ME A DM ON 07030446925....