By Umar Muhammad Puma
A Bill seeking to ensure that private companies whose total assets exceed N80 billion convert to public liability companies (PLCs), has passed for second reading on the floor of the House of Representatives. Sponsor of the Bill, Rep Chris Emeka Azubogu (APGA Anambra), said the
Bill 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 in the stock exchange, a move he argued would promote growth for both the companies and the Nigerian Capital Market. He said; “If proper fundings are 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.
Rep Nicholas Ossai, (PDP Dlta), while supporting the Bill, noted that local businesses would begin to grow, if such companies are duly listed in 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. Rep Fort Dike while opposing the Bill advised the sponsor to dump it, arguing that “The bill did not take so many things into consideration. conflict with the general ideas of investment in the country.