CAC strikes off dormant companies for failing to file annual returns after 10-Years

The Corporate Affairs Commission (CAC) has removed the names of dormant companies from its register for failing to file annual returns for over a decade.

This action follows the expiration of a 90-day statutory notice issued by the Commission, urging affected companies to comply with the requirements outlined in the Companies and Allied Matters Act (CAMA) No. 3 of 2020.

In a statement signed by the commission’s management, the CAC emphasized that it invoked its powers under Section 692 (4) of CAMA 2020 to strike off companies that failed or refused to update their annual returns within the stipulated time frame. The delisted companies are now deemed dissolved, effective from the date of publication.

“The General public may recall that the Commission issued a Notice of Intention to strike off names of Companies which the Commission has reasonable cause to believe are not carrying out business or are otherwise dormant because of not filing Annual Returns for 10 years. Statutory Period of 90 days was given to such companies to file the requisite Annual Returns and send activation email to [email protected].

“Companies that have complied with the advisory have been removed from the list. The Commission under its powers granted in Section 692 (4) of the Companies and Allied Matters Act No. 3 of 2020 has stricken off the names of the companies that have failed or refused to update the Annual returns.

Companies stricken off the register are deemed to have been dissolved from the date of publication. It is illegal to enter into any transaction or deal with a company that has been dissolved,” the statement read.d

The Commission had earlier announced its intention in July, warning that defunct or dormant companies with 10 years of non-compliance would face removal.

A full list of affected companies was published on the Commission’s website, with instructions for them to file all outstanding returns and send an activation email to [email protected] within the 90-day grace period.

“This is to inform the General Public that the Commissiounderto its powers contained in Section 692 (3) (4) of the Companies and Allied Matters Act No. 3 of 2020, intends to strike off from the Register, names of defunct or dormant companies that have not filed Annual Returns for 10 years,” it said in a statement posted on its X account.

“These companies are given a period of 90 days from the date of this publication to file all outstanding annual returns and send an email of this fact to [email protected]. so as to remove their names from the list,” it said.

While several companies took the opportunity to regularize their status and were subsequently removed from the list, others failed to comply and have now been dissolved.

The CAC reiterated that it is illegal to engage in any transactions or business dealings with companies that have been delisted, as such entities no longer exist legally.