SAN FRANCISCO, July 02, (THEWILL) – The House of Representatives Wednesday passed for second reading a Bill to ensure that private companies with total assets exceeding N80 billion should convert to Public Liability Companies (Plcs).
The bill, sponsored by Hon. Chris Emeka Azubogu (APGA, Anambra) is entitled: a bill for an act to provide for private companies whose shareholders’ funds exceed N40 billion or their annual turnover exceeds N80 billion or their total assets exceed N80 billion to convert to Public Liability Companies and get their shares listed on the Stock Exchange, thereby promoting growth for both the companies and the Nigerian Capital Market and for other related matters.
While shedding light on the intention of the Bill, Azubogu said if passed into law, private companies whose shareholders’ funds exceed N40 billion or their annual turnover exceeds N80 billion or their total assets exceed N80 billion would automatically convert to Public Liability companies and get their shares listed on the Stock Exchange, a move he argued would promote growth for both the companies and the Nigerian Capital Market.
“If proper funding is given to business owners or small companies in the country, it would help to build up strong business institution that will reduce the rate of unemployment,” he said, adding that the bill seeks to regulate private companies.
While supporting the bill, Nicholas Ossai noted that local businesses would begin to grow if such companies are duly listed on the NSE.
“It will empower Nigerians. It will enable Nigerians participate in the country’s economy. It is in line with international best practices. The bill should be passed so as to improve enterprise in the country,” he noted.
Also speaking in support of the Bill, Deputy Leader of the House, Leo Ogor, observed that it is the core responsibility of the lawmakers to regulate private companies.
“It is a bill that should be given the necessary support for the interest of the growth of the country’s economy,” the lawmaker said.
However, speaking against the bill, Hon. Fort Dike argued that “The bill did not take so many things into consideration.”
According to Dike, “ It is anti business to force individuals to go into Stock Exchange. This bill should not be allowed to scale through because it will be in conflict with the general ideas of investment in the country. This bill will make the parliament look like it lacks business knowledge”.
The Bill has been referred to the Committee on Capital Market and other institutions for further legislative action.
SAINT MUGAGA, ABUJA
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