CAC’s Name Reservation And Grace Period Rules Challenged In Court By Lawyer
An Abuja-based lawyer, Hyginus Ibega, Esq., has filed multiple lawsuits against the Corporate Affairs Commission (CAC) over what he deems as “unjustifiable policies.”
The plaintiff has dragged the CAC to the Federal High Court in Abuja, challenging several policies that he claims are inconsistent with the law establishing the commission.
In a writ of summons filed on February 29, 2024, with suit number FHC/ABJ/CS/260/2021, the plaintiff commenced an action challenging the CAC’s “7-day grace period” policy. Under this policy, customers who fail to download their incorporation documents from the portal within seven days after incorporation are barred from doing so unless they make additional payments, despite having already paid for the incorporation documents.
In a second lawsuit, with suit number FHC/ABJ/CS/261/2024, the plaintiff filed an originating summons seeking the court’s interpretation of Section 852(2) of the Companies and Allied Matters Act (CAMA) 2020.
The plaintiff, suing in his personal capacity, questions CAC’s authority to demand reservation codes or consent from name reservation applicants, even when the names do not fall under the category specified in Section 852(2) of CAMA, which legally requires consent.
Both matters have been assigned to Court 2 at the Federal High Court, Central Building District, Abuja. The defendant, CAC, has been served with the originating process, and the cases are scheduled for hearing on April 23, 2024.
