A Critical Appraisal of the Powers of the Corporate Affairs Commission (CAC) Under Section 839 of the Companies and Allied Matters Act 2020

Abstract

The Companies and Allied Matters Act 2020 is considered a new dawn in corporate matters’ administration because of the new innovations introduced by it. Despite these innovations, Section 839 (1) and (2) of the Act1 is particularly criticized for the powers of suspension of incorporated trustees it conferred on the Corporate Affairs Commission. This article critically appraised the section against the backdrop of the powers of suspension, and appointment of interim managers for supervision and management conferred on the Commission. The researchers found that the Commission’s discretion on its “reasonable believes” contradicts the powers conferred on the court to suspend trustees of an association. It is also the finding of this work that while the Act made provision for suspension of the trustees, it made no attempt to specify the qualification and other requirements necessary to determine the interim managers for the purpose of protecting the various types of registered organizations under the section. Similarly, the power of the Commission to suspend or remove trustees of an association which they were never part of, derogates from the rights of the members of the association and their freedom of association. The researchers recommended among other things the need to amended section 839 to absolutely confer the powers to suspend, remove and appoint interim managers on the court upon the petition of members of an association.