msn.com 18 Sep, 2020 05:45 am

Weighing MSMEs’ opportunities, challenges under CAMA

The signing of the Companies and Allied Matters (CAMA) Act 2020 into law could be the regulatory tonic to galvanise the estimated 41.5 million Micro, Small and Medium Enterprises (MSMEs). According to experts, MSMEs can draw sufficient strength from some of the key provisions and changes introduced by the new law. However, despite its capacity to push possibilities into the hands of MSMEs wishing to achieve scale and emerge competitive, there...

According to experts, MSMEs can draw sufficient strength from some of the key provisions and changes introduced by the new law.However, despite its capacity to push possibilities into the hands of MSMEs wishing to achieve scale and emerge competitive, there are flip sides to the new law.Although the new law has been the butt of controversy and scathing criticisms, mostly by churches, CAMA 2020 is said to be the most important business regulation in Nigeria, as it has significant impact on doing business, competitiveness, attracting investments, and economic growth.Taiwo Oyedele, described CAMA 2020 as “A good legislation,” noting that the new law made provisions for a single member/shareholder companies whereby a private company can be established with only one member or shareholder.

Oyedele also pointed out that the new law allowed the introduction of limited partnerships and limited liability partnerships in Nigeria which provides the organiaaational flexibility and tax status of a partnership with the limited liability of members of a company for partnerships.The PwC’s tax head, in his presentation entitled: “CAMA 2020: Nigeria’s Competitiveness and Ease of Doing Business,” also said the new law “Protects minority interest even as it has administrative arrangements to rescue a company or help it achieve better results.

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