The Corporate Affairs Commission (CAC) is seeking legal powers to remove erring directors and officers of companies “in line with the practice in most company registries globally”.
This formed part of the requests presented by Bello Mahmud, the CAC registrar-general, to members of the House of Representatives’ Committee on Commerce on Monday in Abuja.
The lawmakers were at the commission’s head office on an oversight visit.
Mahmud said that the legal power to remove erring company directors and officers was one of the areas “which are of momentous challenges” to the commission.
To this end, he called on the National Assembly to amend the Companies and Allied Matters Act (CAMA) 1990, which he described as obsolete and out of tune with modern business practices.
“The Companies and Allied Matters Act CAMA No. 1 of 1990 has been in operation for over 20 years.
“The law requires substantial amendments to enable the commission to keep pace with changing economic circumstances and modern business practices.”