The Corporate Affairs Commission (CAC) has drawn the attention of business owners, clubs, associations, and non-governmental organisations (NGOs) to its Administrative Proceedings Committee (APC).

Nairametrics reports that the Administrative Proceedings Committee (APC) of the CAC has the power to impose administrative penalties and revocation orders against any business that allegedly contravenes any section of the Companies and Allied Matters Act (CAMA).

The notice was announced by the CAC on Thursday, February 6, 2025.

According to the CAC, its esteemed customers and the general public should note the provisions of the Administrative Proceedings Committee (APC) as enshrined in Section 851 of CAMA 2020.

The Commission stated that the APC is a novel provision of the Companies and Allied Matters Act (CAMA) 2020, aimed at ensuring ease of doing business and sustainability for companies, clubs, associations, and non-governmental organisations.

It stressed that Section 851 of CAMA 2020 provides a platform for anyone with grievances or complaints related to a registered entity to report the matter to the Administrative Proceedings Committee (APC).

?The APC will entertain complaints and adjudicate on non-criminal matters arising from the operations of entities or associations.

?It is also empowered to recommend prosecution for crime-related matters, and any decision taken by the committee, after confirmation by the CAC board, becomes the Commission?s official position,? the Commission added.

The CAC stated that any aggrieved party who is unsatisfied with the APC?s decision has the right to appeal to the Federal High Court, which serves as the appellate court for the Committee?s decisions, not as a court of first instance.

The Commission advised stakeholders to approach the Committee for dispute resolution instead of resorting to litigation, which could impose economic strain on Nigerian businesses.

?Business owners, clubs, associations, and non-governmental organisations are hereby enjoined to take advantage of this novel provision to amicably resolve disputes instead of engaging in unending litigations that will frustrate economic growth,? the CAC added.

Complainants were asked to forward their complaints to the APC secretariat via email at apc@cac.gov.ng write to the Registrar-General for prompt resolution of disputes.

More Insights on the Committee

Section 851 of the Companies and Allied Matters Act recommends the establishment of an Administrative Proceedings Committee within the CAC.

As seen by Nairametrics, the Committee is comprised of:

(a) the Registrar-General, who shall serve as the Chairman of the Administrative Committee;

(b) five representatives from the operational departments of the Commission, not below the grade level of a director, one of whom shall be from the Compliance Department of the Commission; and

(c) a representative of the Federal Ministry of Industry, Trade and Investment, not below the grade level of a director.

The Committee shall provide an opportunity for individuals alleged to have contravened the provisions of this Act or its regulations to be heard.

Its other functions include:

Resolving disputes or grievances arising from the operations of this Act or its regulations; and

Imposing administrative penalties for contravening the provisions of this Act or its regulations in the settlement of matters before it.

The Administrative Proceedings Committee has the authority to impose administrative penalties, suspend or revoke registrations, or recommend criminal prosecution if cases brought before it reveal any criminal act or conduct.

What This Means: The legislation and public notice from the CAC suggest that enforcement of administrative penalties on alleged defaulting businesses is imminent, particularly for businesses found to be in violation of CAMA 2020

The development is also related to what obtains in the Federal Competition and Consumer Protection Commission (FCCPC), where its internal mechanism intervenes and imposes penalties and sanctions on defaulting companies or consumers.

Furthermore, businesses may likely face both CAC and FCCPC, in resolving disputes. (Nairametrics)

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