The Centre for Human Rights and Anti- Corruption Crusade, CHURAC has said that the provisions in the new Companies and Allied Matters Act, 2020 are in “flagrant violation” of Chapter 4 of the 1999 Constitution(As Amended) of Nigeria.
In a statement signed and made available to Our Correspondent, CHURAC National President, Cleric E. Alaowei, Esq said the Constitution provides for the right to freedom of association.
He stressed that, “Giving CAC such powers to unilaterally take over an association without the recourse to court order will in no doubt breach the Constitution.”
Alaowei said the new Companies and Allied Matters Act, 2020 brought some good innovations into our corporate law practice, especially as it relates to ease of doing business.
He also said, “the controversy it is however generating is the provisions under section 839(1) which, in clear and unambiguous terms, empowers the Corporate Affairs Commission (CAC) to suspend trustees of an association and appoint interim managers to manage the affairs of the association where it reasonably believes that:
a) There is or has been misconduct or mismanagement in the administration of the association;
b) It is necessary or desirable for the purpose of;
i. Protecting the property of the association
ii. Securing a proper application for the property of the association towards achieving the objects of the association, the purpose of the association of that property or of the property coming to the association;
iii. Public interest; or
(c) The affairs of the association are being run fraudulently.”
Alaowei said that he may contest the new law in the Court to right the wrongs as soon as he finishes studying the same.