Another policy blunder in the making that must be avoided
Companies being delisted from the Corporate Affairs Commission (CAC) will have a significant impact on the overall business environment. While there may be valid reasons for delisting a company, such as non-compliance with regulations or financial insolvency, it is important to consider the broader implications of such actions. In Nigeria, there are a myriad of challenges that go hand in hand with delisting a company. This includes potential job losses, loss of investor confidence, and damage to the country’s overall reputation as a place to do business.
It would have been better if the CAC put delisted companies on a dormant list or sought other ways to support struggling businesses. This would allow for potential recovery and avoid the negative consequences associated with delisting.
Furthermore, the issue of ownership of investments made in the name of a delisted company also raises concerns. Once a company is delisted, shareholders will definitely face difficulties in selling their shares or recovering their investment. Also incase of properties who now becomes the rightful owners of this properties?. This can have serious financial implications for individual investors and further erode confidence in the Nigerian investment climate.
In conclusion, delisting companies from the CAC should be considered carefully, and alternative measures should be explored to support struggling companies and protect the interests of investors. This is not the ideal way to address challenges in the business environment, and we should work towards finding more sustainable solutions.
Otunba Abdulfalil Abayomi ODUNOWO
National Chairman
Asiwaju Ahmed Tinubu Support group (AATSG) 13th December, 2023