84 Views

All You Need To Know About Company Laws In Nigeria

The Corporate Affairs Commission (CAC) is responsible for regulating the Company and Allied Matters Decree of 1990.  Aside its regulatory function, the CAC is also responsible for supervising the formation of companies. They equally oversee the process involved in the registration of companies as well as company management.  The CAC should also be put in the know if the company decides to wind up.

The very first company law came up in Nigeria in 1912. It was established in Southern Nigeria; Lagos to be precise. This same law got amended some 5 years later in 1917 and it was then able to cover all parts of Nigeria.  It was labeled then as the Companies Amendment and Extension Act of 1917.  The two of them were replaced by the Companies Act of 1922 in 1922. Later in 1968, the Companies Decree took over from the 1922 Company Act.  As at today, the recognized Company Law in Nigeria is the Companies and Allied Matters Decree of 1990.

In order to perform its duties as it should be done, the CAC has offices in practically all states of the country.  They are assigned the responsibility of conducting investigations into internal affairs of a company, especially if the issues of shareholders are concerned.  They are equally compelled to intervene if the interest of the general public is at stake.  However, any issue related to transfer of shares or transfer of ownership of a company does not in any way concern CAC. The death of any of the shareholders too does not concern the CAC.

ALSO READ  Google is Set to Storm Nigeria,Kenya And South Africa On A Progressive Web Apps RoadShow This Month
No one has the right to establish a company without due consultation and approval of the CAC. Before two parties can finally agree to form a company, they are supposed to inform the CAC and carry the commission along. This is because the CAC will be involved in the event need to dissolve the company arises. The company can only expand to new areas with the consent of the CAC.

A company must be registered before it has the right to begin operation.

Before you can establish a company, the CAC insists that you meet up with the following criteria:

  • You must not be less than 18 years old, except if you are joined by at least two other individuals, who are at least 18 years of age
  • You must have sound mind
  • You must not be bankrupt
  • You must not be disqualified under the section 254 of the Company Act, which will prevents you from being the director of a company. The said Section 254 said anyone guilty of fraud or any offence related to management, formation and promotion of a company is not qualified to form any company
  • You must not be the owner of a liquidated company
  • You can only form a company in Nigeria as a foreigner if you have the capacity to participate in or undertake business or trade in that regard.
Finally, the CAC classifies companies under either private or public company. This is according to Section 22, subsection 1 of the Companies and Allied Matters Decree of 1990.

 

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

Why DSS Tried To Arrest Pastor Isa Elbuba Over His Video On Buhari, Fulani Herdsmen
Politics
16 views
Politics
16 views

Why DSS Tried To Arrest Pastor Isa Elbuba Over His Video On Buhari, Fulani Herdsmen

MT - January 16, 2018

PoliticsNGR has revealed that a Pentecostal pastor, Isa Elbuba was almost arrested by the Department of State Security (DSS) for criticizing the activities of Fulani herdsmen. According…

Davido And His Girlfriend, Chioma Avril Rowland Party Hard At Owerri Club (Photos)
Entertainment
21 views
Entertainment
21 views

Davido And His Girlfriend, Chioma Avril Rowland Party Hard At Owerri Club (Photos)

MT - January 16, 2018

Davido and his newest baby in town, Miss Chioma hit the club last Friday at Cubana club located in Owerri, the capital city of Imo State. Present…

Why You Need To Control Paracetamol Usage – PSN
Food and Health
25 views
Food and Health
25 views

Why You Need To Control Paracetamol Usage – PSN

PH - January 16, 2018

Pharmaceutical Society of Nigeria (PSN) has warned against indiscriminate or misuse of Paracetamol, saying such practice damages the liver and kidney. Mr Jelili Kilani, PSN Chairman, FCT…

How To Cope When Everyone Is Getting Engaged While You Are Still Single
How Tos
23 views
How Tos
23 views

How To Cope When Everyone Is Getting Engaged While You Are Still Single

MT - January 16, 2018

Sometimes, when you are single and struggling to find the right partner, seeing friends, colleagues and everyone around you getting engaged can feel like a punch to…

Victor Moses Voted As Avance Media’s Most Influential Young Nigerian
Best of Nigeria
19 views
Best of Nigeria
19 views

Victor Moses Voted As Avance Media’s Most Influential Young Nigerian

PH - January 16, 2018

Nigerian professional footballer and Chelsea FC skipper, Victor Moses, has been voted the 2017 Most Influential Young Nigerian. In a poll organised by Avance Media, the Super Eagle came tops, above…

New Drug That Treats Breast Cancer Better Approved By FDA
Food and Health
21 views
Food and Health
21 views

New Drug That Treats Breast Cancer Better Approved By FDA

MT - January 16, 2018

The Food and Drug Administration in the United States has approved a new treatment for women with breast cancer caused by the BRCA mutation, which Angelina Jolie…

Onyeka Onwenu Charges Music Distributors To Court
Buzz & Trends
24 views
Buzz & Trends
24 views

Onyeka Onwenu Charges Music Distributors To Court

PH - January 16, 2018

Veteran musician, Onyeka Onwenu was at the Lagos High Court yesterday, where her N205million suit against Iroking, a music and movie distributor was heard. The elegant stallion,…

OAP Freeze And Tonto Dikeh Reacts To Funke Akindele’s Name Removal From “Avengers” Cast List
Entertainment
24 views
Entertainment
24 views

OAP Freeze And Tonto Dikeh Reacts To Funke Akindele’s Name Removal From “Avengers” Cast List

PH - January 16, 2018

Controversial OAP Daddy Freeze has reacted on the removal removal of actress, Funke Akindele from the cast list of yet to be released Marvel Studio’s movie “Avengers:…

Libya Returnee, Destiny Kelly Nabbed For Abducting & Robbing Female Corper In Benin
General
26 views
General
26 views

Libya Returnee, Destiny Kelly Nabbed For Abducting & Robbing Female Corper In Benin

PH - January 16, 2018

A Libya Deportee, Destiny Kelly, has been arrested and detained by the Edo State Police command for allegedly abducting and robbing a female National Youth Service Corps…

Mercedes-Benz Unveils The All-New 2019 G550 G-Wagon
Technology
32 views
Technology
32 views

Mercedes-Benz Unveils The All-New 2019 G550 G-Wagon

MT - January 16, 2018

Mercedes has revealed the all-new 2019 Mercedes-Benz G550 Geländewagen a.k.a G-wagon at the detroit auto show and it marks the rebirth of an important automotive icon, and…

CHAN 2018: How Wasteful Super Eagles Were Held By Stubborn Rwanda At Africa Nations Championship
Sports
33 views
Sports
33 views

CHAN 2018: How Wasteful Super Eagles Were Held By Stubborn Rwanda At Africa Nations Championship

MT - January 16, 2018

The home-based Super Eagles were on Monday night, forced to a 0-0 draw by Rwanda in the second game of Group C in the 2018 Africa Nations…

Two Nigerian Colleagues Fight Dirty Over The Same Man They Are Dating At Work
Romance and Love
33 views
Romance and Love
33 views

Two Nigerian Colleagues Fight Dirty Over The Same Man They Are Dating At Work

PH - January 16, 2018

Two colleagues who discovered they were dating same man for over 2 years, and fought over him in office today were reportedly sent on suspension following the…

I Will Sing Till I’m 80 – Nigerian Singer, Asa
Entertainment
26 views
Entertainment
26 views

I Will Sing Till I’m 80 – Nigerian Singer, Asa

MT - January 16, 2018

  Nigerian Singer, Asa revealed in twitter that she would continue to sing till she’s 80. Asa is undoubtedly one of Nigeria’s favourite singer, she is popularly…

Designer Who Gave Bride’s Dress To Mercy Aigbe For photoshoot Has Been Served (Photos)
Entertainment
30 views
Entertainment
30 views

Designer Who Gave Bride’s Dress To Mercy Aigbe For photoshoot Has Been Served (Photos)

PH - January 16, 2018

An aggrieved bride, Lawrentta Adesuwa Sawyer, broke the Nigerian social media sphere on January 1st this year, when she called out designer, Maryam Elisha of Rikato by Me,…

Nollywood Actress, Genevieve Nnaji’s Name Also Removed From Avengers: Infinity War’s Cast
Entertainment
25 views
Entertainment
25 views

Nollywood Actress, Genevieve Nnaji’s Name Also Removed From Avengers: Infinity War’s Cast

MT - January 16, 2018

After the news broke the internet that the nollywood actress “Genevieve Nnaji” has replaced her colleagues “funke akindele” as “dora milaje” in the The avengers: infinity war.…

Angry Youths Embarrasses Mike Ozekhome At Event (Video)
Politics
29 views
Politics
29 views

Angry Youths Embarrasses Mike Ozekhome At Event (Video)

PH - January 16, 2018

Lawyer and Humanrights activist, Mike Ozekhome, was yesterday disgraced at the 14th Gani Fawehinmi Annual Lecture in Lagos when youths present at the lecture attempted to stop him from entrying…

When Is The Right Time To Introduce Your Intended To The Family?
Romance and Love
20 views
Romance and Love
20 views

When Is The Right Time To Introduce Your Intended To The Family?

PH - January 16, 2018

  When is meeting the parents of your boyfriend appropriate? I mean you don’t want to do it too soon. So, when is soon too soon? A…

Ladies: 3 Ways To Wear That White Sneakers
Fashion
26 views
Fashion
26 views

Ladies: 3 Ways To Wear That White Sneakers

PH - January 16, 2018

There are different brands that have the almighty white sneakers. It used to be the rave for only the tomboys but baby; No more o! Women are…

Loading...