Chapter 26 CAMA 2020: Insolvency Professionals, A Miscellany Issue?

Okorie Kalu¹

Peter Edokpayi²

INTRODUCTION

President Muhammadu Buhari on August 7, 2020, assented to the Companies and Allied Matters Act, 2020 ("CAMA 2020" or "the New Act³"), which repeals and replaces the Companies and Allied Matters Act, 1990⁴ (the "Repealed Act"). CAMA 2020 reflects a myriad of commendable amendments and introduces new provisions arguably more fitting for contemporary business and insolvency practices⁵.

It substantially extinguishes some bottlenecks contained in the Repealed Act. For instance, it abolished the compulsory requirement for the use of common seal by companies⁶; significantly reduced filing fees for the registration of charges⁷; exempts Private Limited Liability Companies from the mandatory appointment of Company Secretary⁸; provided alternatives for rescue of Insolvent Companies from distress and liquidation through Voluntary Arrangements and Administration⁹; extension of mergers beyond Limited Liability Companies(LLCs) to