New twist in controversial CAMA law as lawyer faults provisions

A lawyer, Layi Ademokoya has faulted provisions contained in Section 839 of the controversial Companies and Allied Matters (CAMA) 2020, particularly sub-sections 1, 2, 3, and 11, which he argued, usurp the discretionary powers of the court and breaches citizens right to fair hearings.

In a suit marked FHC/ABJ/CS/1035/2020, filed at the Federal High Court in Abuja, with National Assembly, the Corporate Affairs Commission (CAC), and Minister of Trade and Investment as defendants, Ademokoya of Babs Akinwumi & Co urged the court to void some portions of the controversial CAMA 2020 for being in conflict with constitutional provisions.

Ademokoya argued the provision in Sub-section 2 “mandated the court to give an order without recourse to the discretionary powers of the court or right of fair hearing for the other party that can be affected by the decisions of the commission.

“The provisions of Section 839 sub-section 1-3 of the Companies and Allied Matters Act, 2019 do not give a fair hearing to a responding party to the commission’s petition as the defendant‘s rights to defend, cross-petition or counter-claim were not captured in the Act.

“The provisions of Section 839 sub-section 1-3 are in contravention of the Constitution of the Federal Republic of Nigeria 1999 (as amended) and the Federal High Court Act LFN 2004. It is only the Judiciary through the courts that can interpret Laws and not the Minister of Trade and investment or Corporate Affairs Commission.

“The Minister of Trade and Investment does not have the powers to give approval to the CAC or an Act inconsistent with the constitutional provisions, thereby making Sections 839 subsection 11 of the CAMA contrary to the supreme law of the land.”

Ademokoya is praying the court to, among others, declare unconstitutional, null, and void the portions of the CAMA he complained about.

He also seeks a declaration that the provisions of Section 839 sub-sections 1, 2, and 3 of the Act “should be amended or expunged with immediate effect.”