In today’s digital age, technology has become a valuable tool for companies to circulate information to their directors and shareholders effectively. However, by virtue of the provisions of the Companies and Allied Matters Act Cap C20 Laws of the Federation 2004 (“CAMA”), companies are still required to serve notices either personally or by sending the notices by post to the addresses of their directors and shareholders.
In order to align with current trends as they relate to the dissemination of information using information technology (“IT”), a number of companies have opted to include provisions in their articles of association (“Articles”) which allow for notices or other documents to be served on shareholders or directors either by telefax, electronic mail or such other internationally accepted mode of communication. Provisions allowing for board and some shareholder meetings to be held by electronic means are also included in such Articles.
It is heartening to note that the new CAMA Bill 2018 (“New CAMA”) which is awaiting presidential assent includes some IT related innovations. Companies will now be permitted to effect electronic service of notices and electronic voting at meetings. Private companies will also be allowed to hold general meetings electronically. However, issues such as electronic meetings for directors, the use of board portals and electronic signatures were not addressed in the new CAMA. We therefore recommend that more laws providing for the use of IT be incorporated into our legislation.
The contents of this news alert are meant for the general information of our clients and friends and do not amount to legal advice. All enquiries on the subject may be made to: firstname.lastname@example.org
Adcax Nominees Limited
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