LEGAL CONSEQUENCES OF THE COMPANIES AND ALLIED MATTERS ACT, 2020 ON INCORPORATED TRUSTEES IN NIGERIA

Abstract

The Companies and Allied Matters Act, 2020 (CAMA) seems to have revolutionized the face of corporate practice in Nigeria in recent time. The sweeping reforms enshrined in the amended CAMA, 2020 will undoubtedly accelerate economic growth and rapidly promote the ease of doing business in Nigeria. In one breath, the remarkable reforms entrenched in the amended CAMA particularly with respect to incorporation, commencement operation of companies and business names have been widely applauded by Nigerians. On the other hand, religious bodies, associations and other ‘Incorporated Trustees’ have heavily condemned some provisions in this extant Act, especially Part F that deals with operations of incorporated trustees and in fact some associations have called for an outright amendment of section 839 of CAMA because of the enormous powers given to the Corporate Affairs Commission (Commission) to suspend, remove and install interim managers for any Incorporated Trustee found wanting. This work examines the legal implications of the novel provisions embedded in CAMA, 2020 as it relates to regulation of Incorporated Trustees in Nigeria. A brief review is also given to the United Kingdom Charities Act, 2011, which is the model for the controversial provisions. This paper concludes that while accountability of an association trustee is desirable and expedient, the Commission should operate within the purview of rule of law and eschew any tyrannical tendencies that will stifle legal operations of Nigerian associations incorporated in Nigeria.