AN EXAMINATION OF THE PROSPECTS AND CHALLENGES OF COMPANIES AND ALLIED MATTERS ACT 2020: A CASE STUDY OF SECTION 839

Companies and Allied Matters Act (CAMA) 2020, principally is to regulate the formation, management and dissolution of Businesses and Associations. It regulates the affairs of Associations such as Non- Governmental Organizations (NGOs),Mosques, Churches, Clubs etc. from their formation, management, and dissolution. This work mainly is directed on the Fundamental Changes and Innovations brought by the present Act in support of the campaign of the government of the Federal Republic of Nigeria on the Ease of Doing Business and illuminating the changes made to the law with respect to Incorporated Trustees under Section 839 of the Act. Doctrinal method of legal research was adopted, the paper found that the Act introduced novel provisions that are in line with international best practices, however found that the provision of section 839 of the Act on the powers of suspension, and appointment of interim managers conferred on the Corporate affairs Commission(CAC) and the Commission’s discretion on its “reasonable believe” contradicts the powers conferred on the court to suspend trustees of an Association. It is advocated that the wide discresionary powers given to Registrar general to remove /suspend trustees of these organizations may be subject to abuse, there is likelihood that injusticeses may reign.The paper recommended among other the need to amended section 839 to absolutely confer the powers to suspend, remove and appoint interim managers on the court upon the petition of members of an Association.