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A Lawyer Challenges CAC’s Policies Over Name Reservation

An Abuja-based legal practitioner, Hyginus Ibega, Esq., has taken legal action against the Corporate Affairs Commission (CAC), contesting specific policies he believes are contrary to the law. Ibega, through his legal team, has filed two separate lawsuits at the Federal High Court in Abuja, challenging the CAC’s practices regarding name reservation and the imposition of […]

Published

1 month ago

March 23, 2024

Stella Charles Akupue

A Lawyer Challenges CAC's Policies Over Name Reservation

In the first lawsuit, filed under suit number FHC/ABJ/CS/260/2021, Ibega contests the CAC’s “7-day grace period” policy. He argues that this policy unfairly penalizes customers who fail to download their incorporation documents from the portal within seven days after incorporation. Despite already paying for these documents, individuals must make additional payments if they miss the deadline. Ibega asserts that such a practice is unjustifiable and violates consumer rights.

The second lawsuit, filed under suit number FHC/ABJ/CS/261/2024, seeks the court’s interpretation of Section 852(2) of the Companies and Allied Matters Act (CAMA) 2020. Ibega challenges the CAC’s requirement for reservation codes or consent from name reservation applicants, particularly when the names do not fall under the category specified in Section 852(2) of CAMA, which legally requires consent.

Both cases have been assigned to Court 2 at the Federal High Court, Central Building District, Abuja. The CAC has been served with the originating process, and the hearings are scheduled for April 23, 2024.

In response to inquiries regarding the lawsuits, the Corporate Affairs Commission has stated that it is aware of the legal proceedings and will respond accordingly through its legal representation.

Hyginus Ibega, Esq., expressed his determination to challenge what he perceives as arbitrary policies that adversely affect businesses and individuals in Nigeria. He emphasized the importance of upholding the rule of law and ensuring that government agencies operate within the confines of existing legislation.

The legal community in Abuja is closely monitoring these cases, as they have the potential to influence regulatory practices and policies concerning business registration and compliance in Nigeria. Further updates will be provided as the cases progress through the judicial system.

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