Business

CAC sets up committee to rescue ailing businesses

Published

9 years ago

September 7, 2015

In from Ali Smart …

As part of efforts to assist ailing companies in the country from going under, the Corporate Affairs Commission (CAC) has set in motion machinery to prevent unnecessary liquidation of companies, Ripples has learnt.

To achieve this, the Commission has set up a Business Advisory Committee with terms of reference as follows: law, finance, audit, human resource, information and communications technology, business management among others.

Confirming this development, the Director of Public Affairs, CAC, Churchill Williams, in a statement on Monday said the establishment of the committee is a strategic, pro-active step taken to place the Commission in a strong position to discharge its responsibility in global or cross border insolvency practice.

Justifying the need for the committee, Williams said: “The Nigerian economy is largely private sector driven with investors doing business across all spheres of the economy and the rescue mission will contribute to sustainable growth and performance by enterprises,” he said.

“The business rescue concept is quite different from striking-off the names of dormant companies from the Register of companies provided for in section 525 of the Companies And Allied Matters Act CAP C20 Laws of the Federation 2004 which allows for removal of inactive or shelf Companies from the data base.

Business Rescue is a window availed a company that could otherwise been liquidated. Company operators are therefore advised to take advantage of this window but to note that there is no bail out”, he said.

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