Court of Appeal orders CAC to deregister KPMG Professional Services
Nigeria’s corporate and legal sectors has experienced another interesting ruling as the Court of Appeal in Abuja has ordered the Corporate Affairs Commission (CAC) to deregister KPMG Professional Services. This decision was made, striking the latter’s striking similarity to the established KPMG Nigeria brand.
The ruling, which was delivered unanimously by Justice Abdullahi Mahmud Bayero and two co-judges, is an impressive enforcement of intellectual property and corporate identity protection under the Companies and Allied Matters Act (CAMA). It puts an end to a long-standing legal tussle between KPMG Nigeria and KPMG Professional Services as a corporate entity.
KPMG Nigeria is one of the “Big Four” accounting firms, offering audit, tax, and advisory services.
In Nigeria, the firm has operated for decades and commands an influential client base across both public and private sectors. However, its corporate structure has been the subject of a legal challenge. Why? It first challenged CAC’s registration of KPMG Professional Services (formerly part of Arthur Andersen) in 2002 the name was misleadingly similar and risked confusing consumers
While the Federal High Court dismissed the suit in 2005, ruling a supposed merger with Akintola Williams Deloitte meant KPMG Nigeria had abandoned exclusive name rights, yhe Appeal Court was not convinced.
Justice Bayero’s judgment clarified that the earlier court had wrongly accepted newspaper reprints as evidence of a merger. Such a critical claim must be supported by binding legal documents, not media speculation.
The court anchored its verdict on Section 852 of CAMA 2020 (formerly Section 662(1)(d) of CAMA 1990), affirming the CAC’s responsibility to ensure unique business names. It quoted the Latin maxim, nemo dat quod non habet, meaning one cannot confer rights one does not own.
Justice Bayero noted KPMG Nigeria had been the first to register several business entities which included Audit (1969), Tax Consultants (1990), and Consulting (1969).
Allowing a similar name later was a direct breach of statutory protocol. He stressed, “The registrar cannot assign a business name already held by another entity. One cannot give what one does not have — nemo dat quod non habet.”
Delivering its judgment, the three-member panel of the Court of Appeal unanimously agreed that KPMG Professional Services is not recognized as a juristic person under the law and should not have been registered as such.
In effect, the Court ordered the CAC to remove or cancel KPMG Professional Services from its company register—a decision that essentially strips the firm of its corporate identity.
The judgment is a significant one, not just because of KPMG’s reputation, but because of its implications for other partnerships and professional firms operating under similar arrangements in Nigeria. Going forward, CAC may face increased pressure to verify the legitimacy and originality of proposed business names, especially when such names resemble those of established international brands.
By upholding KPMG Nigeria’s claim, the court affirms that protecting consumers from brand impersonation is as important as protecting the brand itself. It sets a tone for more rigorous safeguards against misleading corporate identities.
If you enjoyed this article, click here to read more informative posts, also check us out on Instagram for fun and engaging content.
Disclaimer: The opinions, views, and information expressed in this article are those of the author and do not necessarily reflect the official policy, position, or views of iNaijanow. The company assumes no liability for any errors, omissions, or damages arising from the use of this information.
