There are various meetings under CAMA 2020 a company should know. Meetings under CAMA 2020 that your company should hold would depend on your company structure.
In other words, there are different meetings for varying corporate structures in Nigeria. This article highlights the meetings required under CAMA 2020 as well as the companies involved.
Before going through the list of these meetings, it is important that you know what CAMA means?
What Is CAMA 2020?
The Companies and Allied Matters Act, 2020 (CAMA 2020) is a Nigerian federal legislation.
They are set of laws governing the establishment and management of companies in Nigeria.
CAMA 2020 supersedes and replaces the Companies and Allied Matters Act, 2004, which was an updated version of the Companies Act of 1968.
Let’s go through some of the meetings under CAMA 2020.
List Of Compulsory Meetings Under CAMA 2020
Below is a list of compulsory meetings under CAMA 2020.
1. Annual General Meetings (AGM)
This meeting is mandatory for all companies in Nigeria. However, companies with a single shareholder must hold within 18 months of incorporation, and subsequently, not later than 15 months after the last AGM.
2. Extra Ordinary General Meeting (EGM)
One of the compulsory meetings under CAMA 2020 is the Extraordinary General Meeting (EGM). They handle emergency corporate matters that cannot wait till the AGM. They can be convened by the shareholders and directors of the company.
3. Board of Directors Meeting
Under CAMA 20, directors must hold their first meeting not later than six months after incorporation by the company. There are important provisions for the Board of Directors’ meeting in Nigeria. These relate to quorum, voting, and appointment of the chairman of the Board of Directors.
4. Statutory Meeting
This kind of meeting applies only to public companies. A statutory meeting is mandatory to hold after one month of incorporation but not later than six months post-incorporation.
At this point, let’s proceed to examine the consequences of not holding these meetings under CAMA 2020.
What Happens When Company Meetings Are Not Held?
Depending on the company type, CAC may impose some fines and sanctions on defaulters for non-compliance. Also, the officers of the company run a risk of being charged with an offense.
Meetings are a vital part of any corporate business. Beyond the general requirements, they help to foster corporate accountability both with the regulators and the company’s internal workforce.
It is therefore expedient to ensure that you consult with your lawyers for detailed advice on the required meetings you are obliged to hold as well as others that may be beneficial to your company.
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References
- Ifeanyi Ogbuka, ‘Corporate Governance;- Company Meetings in Nigeria’ available at https://www.tekedia.com/corporate-governance-company-meetings-in-nigeria/ accessed on August 22 2023
- Companies and Allied Matters Act, available at https://www.cac.gov.ng/wp-content/uploads/2020/12/CAMA-NOTE-BOOK-FULL-VERSION.pdf accessed on August 22 2023
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