CAC Extends Deadline For Penalty On Companies Over Annual Returns

The Corporate Affairs Commission (CAC) has decided to postpone the implementation of penalties for companies that have not filed their annual returns.

Vitalmp3 understands that the deadline is now extended from January 1, 2024, to April 1, 2024.

This decision was reportedly made due to technical issues encountered on the Company Registration Portal (CRP) and in response to appeals from the Micro, Small, and Medium Enterprise (MSME) sector.

A statement released on Thursday (today) by the Director of Press at the commission, Dominic Inyang, confirmed the extension as against its earlier notice published on Nov. 2, informing the general public that it shall commence implementation of penalties on companies over failed annual return.

It would be recalled that the full application of the penalties was prescribed by the Companies and Allied Matters Act (CAMA) 2020 and the Companies Regulations 2021 against companies and their directors or officers for who failed to file annual returns.

The agency, however, said: “CAC at this moment extends the commencement date from January 1 to April 1, 2024.

“This extension has become necessary given the glitches presently experienced on the CRP and in deference to appeals from the MSME sector,” Inyang quoted CAC management as saying.

All registered entities under the CAMA are encouraged to utilize the opportunity presented by this extension to submit their annual returns to the commission within the specified timeframe.

“The entities included Companies, Limited Liability Partnerships, Limited Partnerships, Business Names and Incorporated Trustees.

“The general public should please note that this extension of time does not affect the striking-off proceedings commenced by the commission prior to the publication of November 2.

“Companies, their directors, and their officers should note that the Commission shall henceforth proceed against the directors and officers of struck-off companies to recover undischarged penalties against them,” the statement added.