A
Company can be considered a defunct company for failure to file its annual
returns, and the Commission is empowered by SECTION 525 OF COMPANIES AND ALLIED MATTERS ACT to strike off
defunct company.
This
provision provides for the procedure CAC to adopt to strike out the name of
defunct company failure to file its annual return, the procedure is as follows;
a) Where the CAC has reasonable
cause to believe that a company is not carrying on business or in operation, it
may send to the company by post a letter inquiring whether the company is
carrying on business or in operation
b) If the CAC does not within one
month of sending the letter, receive any answer, it shall within 14 days after
the expiration of the one month send to the company by post, a registered
letter referring to the first letter and stating that no answer thereto has
been received and that if answer is not received to the second letter within one
month, notice shall be published in the Gazette with a view to striking out the
name of the company off the register
c) If the CAC receives an answer to
the effect that the company is not carrying on business or in operation, or
does not within one month of sending the second letter, receives an answer, It
may publish in the Gazette and send to the company by post, a notice that at
the expiration of three months from the date of that notice, the name of the
company mentioned therein shall unless cause to be shown to the contrary, be
struck off the register, and the company shall be dissolved
d) Any company or member aggrieved by
the striking off the name of the company may apply to the court at any time
before the expiration of twenty years from the publication of the notice
striking off the name of the company for the name of the company to be restored
to the register.
IMPLICATION
OF CAC ACTION
By
striking off, it does not mean the companies have been dissolved. The companies
have been more or less suspended and they cannot go back to business unless
they obtain an order of court to re-list, the law from above gives them a
window of 20 years within which they can apply to re-list.
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