Editorial
The Companies and Allied Matters Act (CAMA), 2020, recently signed into law by President Muhammadu Buhari, has received wide acclamation from important stakeholders, even as a minority kicked against some provisions. Chairman of the Nigerian Bar Association on Business Law (SBL), Mr. Seni Adio (SAN), called the new law, the “singular most transforming legislation for ease of doing business and fostering a competitive economy.” We agree that the new law will enhance business activities and properly regulate organisations operating as Registered Trustees.
Leading the opposing side is Bishop David Oyedepo of the Living Faith Church, and the Christian Association of Nigeria (CAN). According to Oyedepo: “The church works on the pattern delivered by God not the pattern of man. Government has no power to appoint people over churches.” He went on: “This is a secular nation. The church is the greatest asset of God in this country. Please be warned.” Reacting to Bishop Oyedepo, a presidential aide, Lorreta Onochie, wrote: “I hope this is not true. If it is, Oyedepo will have to manufacture his own country and live by his own laws.”
Much as the reaction of the presidential aide may be brash, the truth is that many associations and faith-based organisations, operating under the Trustees section of the CAMA 1990, treated their organisations as if they operated in a different country. There were common disregard for accountability in such organisations. It was ordinary for Trustees to use resources raised in the organisation to venture into private business, ignoring that under the law, such resources can only be used for the purpose named.
Many of the organisations are also unaccountable to the members of the organisation who raise the resources that the Trustees spend. In many instances, the Trustees who are usually the founders of the organisation equate it to a private enterprise, and as such use the resources raised for private endeavour. In some cases, they also manipulate the succession plans for the benefit of their private families. Furthermore, they disregard the regulation to make accounts available for government and public scrutiny. Some of them have adhered to due process and accounting in their international branches and even submitted to sanctions and takeovers. But they resist at home.
We expect that the new CAMA will help stop these unlawful conducts, under the old law. So, we commend the stakeholders who worked together to gift Nigeria a modern Companies and Allied Matters Act. Indeed, if Nigeria desires to encourage foreign investment, it must make easy the doing of business for foreign investors to bet in Nigeria. While the regulation should be clear and protective of the Nigerian business environment, it must be such to discourage undue restriction which stifles foreign investment. We also commend the whittling down of the bureaucracy in company registration and ownership structure.
What the Federal Government must ensure is that those who will be in charge of regulating businesses and Trustee organisations do not abuse the powers. The Registrar-General of the Corporate Affairs Commission, and the minister who have the power to regulate companies and Trustee organisations, must treat their powers as a sacred trust. If they abuse the power of regulation, they would legitimately be accused of bias, thus defeating the purpose for amending the CAMA Act.
If they have the courage and conviction to do the right thing at all times, to all persons, then the new CAMA will usher a modern era in regulating companies and Trustees organisations. It is only then that Ms Onochie can legitimately say to Bishop Oyedepo: “As long as he lives and operates within the entity called Nigeria, he will live by Nigerian rules and laws. He will do as he’s told by the law. Enough of lawlessness.” After all, faith institutions operating outside Nigeria obey similar laws abroad, so why the complaints here in Nigeria?
Source: thenationonlineng.net
