CAC to take action against companies not following business letter rules

The Corporate Affairs Commission (CAC) has said it will start enforcing rules about what companies must show in their business letters. They warned that companies that do not follow these rules will face penalties.

The commission shared this in a public notice on Wednesday. They said this enforcement will ensure companies follow Sections 304(1), 304(2), and 729(1)(c) of the Companies and Allied Matters Act (CAMA) 2020.

These rules require companies to be open. They must show their exact legal name, registration number, and details about their directors on all official papers and at their business locations.

CAC said the enforcement will start on 1 August. They added that companies that do not comply will face penalties as per the law.

“The Commission wishes to inform the General Public, Esteemed Customers, and in particular, Companies registered under the Companies and Allied Matters Act 2020, that commencing the 1st day of August 2026, the Commission shall enforce the full application of the requirements of sections 304(1) & (2) and (1)(c) of the Act with respect to company business letters with attendant sanctions for non-compliance,” CAC said.

CAC explained that every company registered under the Act must include certain details clearly on its business letters. This includes the current first name or initials and last name of every director, any former first name and last name, the nationality of every non-Nigerian director, and the company’s registered name and registration number.

“Companies are to note that the Act requires every company so registered to state in legible characters on its business letters, the present forename or initials and surname; any former forename and surname; and nationality of every non-Nigerian director as well as the company’s name and registration number,” CAC said.

The agency emphasized its commitment to promoting openness, accountability, and customer satisfaction. They said they are focused on creating a stronger and more responsive corporate regulatory environment.