The Senate on Wednesday passed the amendments to the Companies and Allied Matters Act of the Federation, 2004.
The amendment makes it mandatory for the appointment of the Chairman of the Corporate Affairs Commission (CAC) to be subjected to the confirmation of the Senate.
The bill also provides for the commission to submit its annual budgetary estimates and financial reports to the National Assembly and guidelines for the appointment of secretary to the commission.
After the passage, Sen. Odion Ugbesia, Chairman, Senate Committee on Trade, said the bill’s major objective was to strengthen the CAC as one of the gateways to the nation’s economy.
“We believe that the CAC is the gateway to the Nigerian economy. If you are going to do business in Nigeria the first point of call is the Corporate Affairs Commission.
“So, if you are going to appoint a chairman for the commission, the Senate should screen him to be sure that he is a fit and proper person to head and supervise the place.
“The annual budget of the CAC should be appropriated by the National Assembly and not by the minister as is currently done.
“So, there has been the need to correct this aberration,’’ he said.
He said the bill recommended that the commission’s chairman should be appointed by the President on the recommendation of the minister of its supervising ministry.
Ugbesia added that the amendment would also ensure that federal character was reflected in the appointment of members of the board of the commission.
“The board will have representative each from the business community, the Security and Exchange Commission, Manufacturers Association of Nigeria, Ministry of Justice, and others,’’ he said.
The Senate President, Sen. David Mark, commended the committee for the coming up with the amendments that would further strengthen the laws guiding the operations of companies in the country.