CAMA 2020: Expert suggests additional authentication over electronic transmissions

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CAMA 2020

TINUADE Awe, Director, Regulation, Nigerian Stock Exchange (NSE), has advised that there should be additional authentication by businesses to tackle security risks on the provision for electronic filing as contained in the Companies and Allied Matters Act 2020.

Awe gave the advice at a webinar organised by the Lagos Chamber of Commerce and Industry LCCI and Ælex, a legal firm on Friday.

The News Agency of Nigeria (NAN) reports that the webinar had as its theme: ” CAMA and The Business Community.”

NAN also reports that the provision of electronic filing means that certified true copies of electronically filed documents are admissible in evidence with equal validity with original documents.

Awe said the additional authentication was necessary to protect businesses and improve cybersecurity, by curtailing cybercrime, forgery, and fraudulent actions by criminals.

She proposed a follow-up telephone call or additional documentation to secure the entire business project electronically.

Speaking on the positives of the recently signed CAMA, Awe said that the framework allowed for a proper derivative market due to the netting provisions.

A derivative market is a financial market for financial instruments such as assets that can be exchange-traded or traded over the counter.

Awe said, ” The netting provisions bring Nigeria formally into the category of countries that have clear provisions on derivative rules and engagement.

“The only uncertainty is that you don’t want a situation where a derivative operation is already in flight and one is going insolvent.

“However, it is a huge development that Nigeria can have a derivative market with codified rules.”

In her remarks, Dr. Jumoke Oduwole, Special Adviser to the President on Ease of Doing Business, said the Act would facilitate investment for small businesses due to its cheaper, easier, and more transparent nature.

Oduwole called for the input of the organised private sector on an omnibus bill on business facilitation currently in process.

She said that the deadline for private sector input was Sept. 18. “We welcome additional comments to the Omnibus Bill on business facilitation as the bill would be finalised and introduced to the National Assembly as an Executive Bill.

“CAMA has brought company law to 21st century international best practices. It has also elevated trust for the electronic version of materials, as it allows notice of meetings to be served by mail.

“I would also say that public-private partnership is key to ease of doing business in the country, ” she said.

Also speaking, Mr. Garba Abubakar, Director-General, Corporate Affairs Commission (CAC) said the commission would maintain an open financial register for companies easily accessible for transparency and verification.

Abubakar said that the CAC was working assiduously on leveraging technological applications for the development and deployment of the ease of doing business agenda of the country.

“As of today, any information with regards to any company in the United Kingdom can easily be accessed and downloaded.

“We have to model the same, and with an enabling legal framework, the CAC would provide such documents for assessment and verification,” he said. (NAN)

– Sept. 4, 2020 @ 17:05 GMT |

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