According to history, the very first Nigeria company law was announced in 1912. It was then established in Southern Nigeria; Lagos precise. The same law got refined 5 years later in 1917 and it was then be able to cover all parts of Nigeria. It was known then as the Companies Amendment and Extension Act of 1917. Both 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. At as this time 2016, the recognized Company Law in Nigeria is the Companies and Allied Matters Decree of 1990.
The Nigeria Corporate Affairs Commission (CAC) is responsible for regulating the Company and Allied Matters Decree of 1990. Aside its regulatory function, the Nigeria Corporate Affairs Commission CAC is also responsible for supervising all formation of companies. They equally oversee the process involved in the registration of companies as well as company management as at today. The CAC must also be put in the know if the company decides to wind up.
In order to perform its duties as it should be done, the CAC has offices in practically all states of Nigeria. They are been assigned the responsibility of conducting investigations into all internal affairs of a company, most especially if the issues concern shareholders . They are also equally compelled to intervene when the interest of the general public is at stake. However. It will be good to inform you that 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.
Company Law In Nigeria
- It required the the person must not be less in age than 18 years old, except if you are joined by at least two other individuals, who are at least 18 years of age
- Person must not be bankrupt
- Person must have sound mind
- Person must not be disqualified under the section 254 of the Company Act, which will prevents you from being the director of a company. The 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
- Person must not be the owner of a liquidated company
- Person 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.
You should also know that the CAC classifies companies under either private or public company.
This is company law in Nigeria and all you need to know for more info