CAC endorses demutualisation of NSE

The Corporate Affairs Commission (CAC) has given its backing to the ongoing demutualisation of the Nigerian Stock Exchange (NSE).

Demutualisation is the conversion of a member-owned, non-profit, mutual-based organisation to a profit-making, public limited liability company owned by shareholders.

Registrar-General and Chief Executive Officer, CAC, Alhaji Garba Abubakar gave the assurance on Monday during a digital closing gong ceremony at the NSE.

According to him, CAC was excited that the demutualisation is in the final stage and coming to a close. CAC, as Nigeria’s corporate registry, has important roles to play in registering an approving the emergent companies from the demutualisation.

“We are glad that the demutualisation of the Exchange is coming to a close and we are eager to see the brand new entities that will act with different mandates to support the economy and investors,” Abubakar said.

He said the Commission has a mutually beneficial relationship with the Exchange, assuring that he would continue to honour the relationship.

He said the CAC remains committed to its responsibility of providing an enabling climate that supports the efforts of the government to improve the ease of doing business not only in registering new businesses but in fulfilling post-registration activities.

“To this end, we began the implementation of CAMA 2020 on January 1, 2021 and we have deployed a new technology solution that supports the full implementation of the law. Our enlightenment on the new CAMA is ongoing and we will continue to engage our stakeholders,” Abubakar said.

The event provided an opportunity for the CAC to intimate the capital market community on the reform initiatives of the CAC, particularly the Companies and Allied Matters Act (CAMA) 2020, which was assented to by His Excellency, President Muhammadu Buhari in August 2020.

NSE Chief Executive Officer, Mr. Oscar Onyema said the Exchange has remained a committed partner to the CAC over the years.

“We are particularly proud of our collaboration during the legislative process of the Company and Allied Matters Bill which led to the signing into law of CAMA 2020, and our recent collaboration with the CAC – along with other stakeholders – to host a public presentation of the newly upgraded CAC Online Registration Portal. We note this success and commend the CAC for its reform initiatives even in challenging times,” Onyema said.

He said the Exchange is grateful for the dedicated support of the CAC in the final stages of the ongoing demutualisation exercise.

He noted that the demutualisation would see the Exchange unfolding into a structure that takes full advantage of business opportunities in line with its growth strategy into the future.

The Exchange has been resolute in its commitment to provide issuers with a platform that allows them to meet their strategic business objectives. Facilitating the engagement with the CAC and capital market stakeholders was, therefore, both timely and strategic as the commission is a critical regulatory agency in achieving such business objectives.