Introduction
On 25th January 2021, the Corporate Affairs Commission (“CAC”) notified the public, particularly the banking, financial and insurance companies (as well as deposit, provident and benefit societies) to submit the Statement in the 14th Schedule (“the Statement”), prescribed under section 733 of the Companies and Allied Matters Act 2020 (“CAMA 2020”) through any of the designated courier companies. Subsequently, on 1st February, 2021, the CAC notified the public about the new filing fees and penalties for the late filing of the Statement in the 14th Schedule.
Filing of Statutory Statement
Section 733(1) (formerly section 553 CAMA 1990) of CAMA 2020 provides that:
“every banking company, insurance company or a deposit, provident or benefit society shall, before it commences business, and also on the first Monday in February and the first Tuesday in August in every year during which it carries on business, submit to the Commission a statement in the form in the Fourteenth Schedule to this Act or as near thereto as circumstances may admit”.
According to the Companies Regulations 2021, the filing fees for the Statement are N5,000.00 and N10,000.00 for private and public companies, respectively. Also, further to section 733(4) of CAMA 2020, penalties for late filing of the Statement will be due for every day during which the default continues against the company, each of its directors and the Company Secretary, as follows:
▪ Small Company: N250.00 each for every day of default.
▪ Private Company other than Small Company: N500.00 each for every day of default.
▪ Public Company: N1000.00 each for every day of default.
Comment
The Statement is a statutory compliance form which requires affected entities to provide an update to the CAC on details including its share capital, debts, and assets. Asides being evidence of good governance, regular compliance ensures that enquiring third parties have a source of up-to-date information on the financial health of the companies, being banks and other financial entities.