JUDICIAL REVIEW OF ADMINISTRATIVE POWERS AND DISCRETION OF THE CORPORATE AFFAIRS COMMISSION (CAC) UNDER COMPANIES AND ALLIED MATTERS ACT (CAMA) 2020

Abstract

The Corporate Affairs Commission was set up and adorned with numerous powers and discretions. In the past, there have been allegations of abuse and overbearing stance in the exercise of these powers and discretions. This study establishes that the administrative and discretionary powers vested in Corporate Affairs Commission (CAC) via Companies and Allied Matters Act (CAMA) 2020 are amenable to judicial review, so as to curb arbitrariness, maintain accountability and save constitutionalism. The issue that has necessitated this enquiry is the wide-scope legal underpinning of CAC statutory empowerments ranging from registration, investigation and supervisory stage through to suspensions of trustees down to regulatory rule-making which creates vulnerability for administrative expansionism and potential encroachments on capitalistic rights especially when decisions are made without substantial procedural safeguards. This study seeks to provide a critical examination of the extent and limits, as well judicial reviewability, of CAC’s discretionary power. Its goals are to: examine the statutory basis of CAC’s powers under CAMA 2020 analyse aspects vulnerable to abuse; review common law principles of administrative law limiting the exercise of such discretion; and consider how courts balance regulatory efficiency with legal accountability. As its methodology, the research is a doctrinal one focusing on the statutes, case-law and scholarly literature to filter out relevant rulings. The focal drive of this discourse is that although CAMA 2020 empowers the CAC, its powers are not untrammelled and unrestrained and judicial control is paramount for good governance. The conclusion suggests that clearer procedural standards, better internal controls, and continuing judicial involvement are required to refashion the rule of law.