Corporate Law at Nigeria
Corporate law in Nigeria governs the formation, operation, and dissolution of companies and other business entities. It is a critical part of the country’s legal system and plays a significant role in promoting a stable business environment. Here's an overview:
📘 Key Legal Framework
Companies and Allied Matters Act (CAMA), 2020
The principal legislation regulating company law in Nigeria.
Overseen by the Corporate Affairs Commission (CAC).
Replaced the old CAMA 1990 to simplify processes and improve corporate governance.
🏢 Types of Companies under Nigerian Law
Private Company Limited by Shares (Ltd)
Public Company Limited by Shares (PLC)
Company Limited by Guarantee
Unlimited Company
🔑 Key Corporate Law Principles
Corporate Personality: A company is a legal entity separate from its shareholders (established in Salomon v Salomon & Co).
Limited Liability: Shareholders' liability is limited to their investment.
Board of Directors: Responsible for the management and control of the company.
Corporate Governance: Companies are expected to follow the Nigerian Code of Corporate Governance (NCCG 2018).
Disclosure and Transparency: Mandatory filing of annual returns and financial statements.
🛠️ Key Regulatory Bodies
Corporate Affairs Commission (CAC) – Company registration, regulation.
Securities and Exchange Commission (SEC) – Regulates public companies and capital markets.
Federal Inland Revenue Service (FIRS) – Tax compliance.
Nigerian Stock Exchange (NGX) – For listed companies.
⚖️ Recent Developments
CAMA 2020 introduced innovations like:
Single-member companies.
Electronic filing and virtual meetings.
Reduction of share capital requirements.
Business rescue and insolvency provisions.
📚 Common Corporate Law Matters
Company incorporation and restructuring.
Mergers and acquisitions.
Corporate compliance and governance.
Shareholder agreements and disputes.
Directors’ duties and liabilities.
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