Sales end in

SYNOPTIC GUIDE ON CORPORATE LAW PRACTICE IN NIGERIA

6,500.00
$ 15.86

By
DR. EMMANUEL OLUWAFEMI OLOWONONI ESQ.
LL.B (Hons.), LL.M, Ph.D (Ilorin), BL

About the Author
Oluwafemi Emmanuel Olowononi is a Legal Practitioner, Notary Public, Football Agent, an Arbitrator with specialty in Sports disputes and a Law Lecturer called to the Bar in 2006 with Second Class Upper division. He obtained from University of Ilorin his LL.B, LL.M and completed his Ph.D degree in Law with specialty in football contracts, football disputes and football arbitration. He teaches Corporate Law Practice, Property Law Practice at Bar Part II and Commercial Law at the Bar Part I programme of the Nigerian Law School. He is the founding partner of Elim Legal Consult, a firm that specializes on Sports, Entertainment, Commercial, Corporate and Property law practices with head office in Abuja, Nigeria.

ISBN: N/A
Compare Added Add to Wishlist Browse Wishlist

Description

CHAPTER ONE:
Legal Framework in Corporate Practice and Commercial Transaction in Nigeria.

Legal framework in Corporate Practice and Commercial transactions in Nigeria
Regulatory Ministries, Bodies, and Agencies in Corporate Practice and Commercial Transactions in Nigeria
Selected Regulated Businesses in Nigeria and Regulatory Bodies
Accreditation at CAC
Accreditable Professionals with the Corporate Affairs Commission
Requirements by CAC for Accreditation
Accreditation by Securities and Exchange Commission
Regulatory Bodies
Regulatory Bodies, Agencies, Ministries and Parastatal
Corporate Affairs Commission
Securities and Exchange Commission ( SEC)
Nigerian Investment Promotion Commission (NIPC)
Institute of Chartered Accountants of Nigeria
National Office for Technology Acquisition and Promotion
National Pension Commission
Nigerian Deposit Insurance Corporation
Bureau of Public Enterprises
Asset Management Corporation of Nigeria (AMCON)
Federal High Court of Nigeria
Federal Competition and Consumer Protection Commission(FCCPA)



CHAPTER TWO
CHOICE OF BUSINESS FORMATION IN NIGERIA
2.0.0: Types of Business Organisation……………………………………………14
2.1.0: Types of Companies…………………………………………………….….14
2.1.1.0: Company Limited by Guarantee…………………………………………14
2.1.2.0: Unlimited Company……………………………………………….………15
2.1.3.0: Company Limited by Shares……………………………………..………15
2.2.0: Factors affecting choice of business organization…………………………16
2.3.0: Features of a private company………………………………………………16
2.3.1.0: When is private company recommended…………………………………17
2.4.0: Features of a company limited by guarantee……………………………….17
2.4.1.0: When is a company limited by guarantee recommended…………………18
2.5.0: Features of a public company……………………………………………….18
2.5.1.0: When is a public limited company recommended……………………….19
2.6.0 Distinguishing between private company and public company……………..21
2.7.0: Distinguishing between company limited shares and company limited by guarantee…………………………………………………………………..……..….21
2.8.0: Meaning of holding and subsidiary company………………………………….21



CHAPTER THREE
QUESTIONS, DETAILS AND INFORMATION TO INCORPORATE A COMPANY
3.0.0: Client Interview………………………………………………………..……23
3.1.0: Questions, details and information to incorporate a company……………23
3.2.0: Some selected questions, details, applicability, justification and relevance during incorporation……………………………………………………………………….24
3.3.0: Selected business objects for memorandum of a company……………….26
3.4.0: Sample draft of memorandum and articles of association of a company limited by shares……………………………………………………………………………36
3.5.0: Company limited by guarantee…………………………………………….39
3.6.0: Sample draft of memorandum and articles of association of a company limited by guarantee…………………………………….………………………37
3.7.0: Registrable and non-registrable………………………………………….….45
3.7.1.0: Checklist of restricted corporate name……………………………………45
3.7.2.0: Checklist of prohibited corporate name…………………………………..46
3.8.0: Procedure for availability check and reservation of name…………………46
3.9.0: Documents to be submitted to CAC for incorporation of companies………47
3.10.0: Registration of the company…………………………………………….…48
3.11.0: Refusal of CAC to register a company………………………………..……49
3.12.0: Certificate of Incorporation………………………………………………..49
3.13. Effect of Incorporation……………………………………………………….49
3.14.0: Ethical matters………………………………………………………………50

CHAPTER FOUR
Registration of Business Name
4.0.0: Options under business name…………………………………………………..51
4.1.0: Features of a partnership…………………………………………………..…51
4.2.0: Distinction between partnership and company limited by shares………….52
4.3.0: Features of Sole Proprietorship……………………………………………….52
4.4.0: Registration of business name……………………………………………….52
4.5.0: Prohibited name………………………………………………………………52
4.6.0: Restricted name………………………………………………………………53
4.7.0: When registration of business is not compulsory ………………………….53
4.8.0: Compulsory registration of business……………………………………….54
4.9.0: Checklist of specific instructions to take for the registration of business name…………………………………………………………………………..…..…54
4.10.0: Checklist of items needed to register business name………………………54
4.11.0: Can a minor be involved…………………………………………………….55
4.12.0: Commencement of business before registration…………………………..56
4.13.0: Procedure for registration……………………………….……………..….56
4.14.0: Effects of registration……………………………………….…………..…56
4.15.0: Partnership deed in partnership business……………….….…………..…57
4.16.0: Reasons for business deed……………………………….….………..….…57
4.17.0: Drafting of the Partnership deed………………………………………..….58
4.18.0: Examples of such common law presumptions………………………….….58
4.19.0: Specific clauses and matters to include in a partnership agreement…….…58
4.20.0: Justification for clauses and matters to be included in partnership deed clauses………………………………………………………………………….……59

CHAPTER FIVE
INCORPORATED TRUSTEE AND REGISTRATION OF NON GOVERNMENTAL ORGANISATION (NGO)
6.0.0: Incorporated Trustee………………………………………………………….61
6.1.0: Features of Incorporated trustee……………………………………………..61
6.2.0: Distinction of Incorporated trustee and limited by guarantee………………62
6.3.0: Similarities between Incorporated Trustee and Limited by Guarantee…….62
6.4.0: Comparative advantages of limited by guarantee over Incorporated Trustee…………………………………………………………………………….…63
6.5.0: Specific Instructions to take for the formation of Incorporated Trustee.….63
6.6.0: Checklist of items needed to register Incorporated Trustee………………..63
6.7.0: Who cannot be a trustee……………………………………………………..64
6.8.0: Copy of the extract of the Minutes…………………………………..………64
6.9.0: Advertisement………………………………………………………………..65
6.10.0: Special Clause………………………………………………………………65
6.11.0: Procedure for appointment of additional trustees………………………….65
6.12.0: Conclusion and Ethical Issues………………………………………………66




CHAPTER SIX
PRE-INCORPORATION MATTERS AND PROMOTERS
6.0.0: Comparing a promoter……………………………………………………..…..67
6.1.0: Promotion of a company………………………………………………..….…67
6.2.0: Who is a promoter………………………………………………………….….67
6.3.0: What of professionals engaged in company formation…………………..…68
6.4.0: Legal relationship between a promoter and the company……………….….69
6.5.0: Duties of promoters…………………………………………………………..69
6.6.0: Liabilities of promoters………………………………………………………69
6.7.0: Reasons for rescission…………………………………………………….….70
6.8.0: Is the right of rescission of a company absolute……………………………..70
6.9.0: Is there limitation of time in action against a promoter………………………70
6.10.0: Ratification of contract entered by promoter……………………..……….71
6.11.0: Remuneration of promoters………………………………………..………71
6.12.0: Issues of payment of remuneration generally under CAMA and Nigeria Corporate Law Practice…………………………………………………………..…71
6.13.0: The forms of remuneration available to a promoter………………………..72
6.14.0: Consequences of a promoter convicted of fraudulent practices in the course of promotion……………………………………………………………………………..72




CHAPTER SEVEN

PRE-INCORPORATION CONTRACTS
7.0.0: Legal status of pre-incorporation contract: position at Common law……….73
7.1.0: Legal status of pre-incorporation contract: position under CAMA…….….74
7.2.0: Conflict between provisions of MEMART and pre-incorporation contract………………………………………………………………………………74
7.3.0: Effects of pre-incorporation contracts on memo and articles………………74
7.4.0: Types of pre-incorporation contracts……………………………………….75
7.5.0: Contents of Shareholders agreement………………………………………..75
7.6.0: Joint Venture agreement…….……………………………………………….76
7.6.1.0: Content of Joint venture agreement………………………………………..76
[smartslider3 slider=”5″]
CHAPTER EIGHT
Foreign Participation in the Nigerian Business Sector
8.0.0: Limitation to the liberation of policy…………………………………………77
8.1.0: Laws regulating foreign participation………………………………………..77
8.2.0: Regulatory institutions……………………………………………………….78
8.3.0: Guarantees for investment in Nigeria………………………………………….78
8.4.0: Classification of foreign participation……………………………………….78
8.4.1.0: Portfolio Investment………………………………………………………..78
8.4.2.0: Procedure for portfolio investment…………………………………………80
8.4.3.0: Foreign direct investment………………………………………………….80
8.4.4.0: Why registration……………………………………………………………81
8.4.5.0: Consequences of failing to register with CAC…………………………….82
8.4.6.0: Foreign companies exempted from registration…………………………..82
8.4.7.0: Status of an exempted company……………………………………………83
8.4.8.0: Limitations of exempted companies………………………………………83
8.4.9.0: Procedure for Foreign Direct Investment…………………………………84
8.4.10.0: Application for exemption……………………………………………….84
8.5.0: Nigerian Investment Promotion Commission……………………………….85
8.5.1.0: Procedure for registration with NIPC………………………………………86

CHAPTER NINE
POST INCORPORATION MATTERS
9.0.0: Publication of name……………………………………………..……….…117
9.0.1.0: Publication of name in the name plates…………………………………117
9.0.2.0: Publication of name in the common seal………………………………..117
9.0.3.0: Publication of name in official document/ bill of exchange…………….118
9.0.4.0: Consequences of default…………………………………………………118
9.1.0: Statutory books……………………………………………………………..118
9.1.1.0: Register of members………………………………………………………119
9.1.2.0: Index of members………………………………………………………….119
9.1.3.0: Register of substantial interest in shares………………………..……….119
9.1.4.0: Register of directors and secretaries……………………..……………….119
9.1.5.0: Register of directors and shareholding……………………………………119
9.1.6.0: Register of charges…………………………………………………….…119
9.1.7.0: Register of debentures holders………………………………….………120
9.1.8.0: Minute books……………………………………………………………..120
9.1.9.0: Accounting records………………………………………………..….….120
9.2.0: Statutory returns and time frame…………………………………………..120
9.3.0: Company contracts……………………………………………………..….121
9.4.0: Corporate searches…………………………………………………………121
9.4.1.0: Use of corporate search report…………………………………………..121
9.4.2.0: Procedure for conducting corporate searches…………………………..121
9.4.3.0: Sample draft of a search report………………………………………….123
9.5.0: Examples of alteration……………………………………………….…….123
9.5.1.0: Change of name………………………………………………………….124
9.5.1.1: Procedure………………………………………………………….……..124
9.5.1.2: Sample draft of change of name resolution……………………………..126
9.5.2.0: Alteration of share capital……………………………………………….126
9.5.2.1: Increase of share capital…………………………………………………127
9.5.2.2: Reduction of share capital……………………………………………….128
9.5.2.3: Distinction between reduction and cancellation of shares capital….….128
9.5.2.4: Conditions for reduction……………………………………………..…..128
9.5.2.5: Procedure for reduction of share capital…………………………………129
9.5.2.6: Effective Date………………………………………………………………130
9.5.3.0: Alteration of business/objects………………………………………………130
9.5.3.1.0: Who can challenge the alteration of object clause of a company……..…131
9.5.3.2.0: Grounds for challenge of the alteration…………………………………..132
9.5.3.3.0: Sample draft of resolution for alteration of business object…………….133
9.5.4.0: Alteration of articles…………………………………………………………133
9.5.4.1: Sample draft of resolution for alteration of article of association………..134
9.6.0: Conversion and re-registration………………………………………………134
9.6.1.0: Types of conversion and re-registration of companies…………………135
9.6.2.0: Procedure………………………………………………………………….135
9.6.3.0: Documents to be attached ………………………………………………..135
9.6.4.0: Consequential alterations to be made…………………………………….136
9.6.5.0: Objection at the Federal High Court……………………………………..138
9.6.6.0: LTD to ULTD………………………………………………………………138
9.6.6.1.0: Items and documents needed……………………………………………138
9.6.7.0: ULTD to LTD……………………………………………………….……..139
9.6.8.0: Re-registration of statutory corporation as company limited by shares…139
9.6.9.0: Essential features of conversion………………………………………….140
9.6.10.0: Prohibited re-registration………………………………………………..141
9.6.11.0: Alteration of registered documents of business name…………………141
9.6.12.0: Alteration of constitution of IT………………………………………….141
9.6.13.0: Change of trustees……………………………………………………….142
9.6.14.0: Alteration of change of name of IT………………………………………142

CHAPTER TEN
CORPORATE GOVERNANCE: DIRECTORS AND SECRETARY
10.0.0: What is corporate governance……………………………………………..143
10.1.0: Why corporate governance……………………………………….…………143
10.2.0: Historical background to modern corporate governance…………………144
10.3.0: Code of corporate governance in Nigeria…………………………………144
10.4.0: Theories of corporate governance…………………………………………145
10.5.0: Salient points of codes……………………………………………………..145
10.6.0: Compliance, enforcement and conflicting provision in codes…….…….145
10.7.0: Directors……………………………………………………………………146
[smartslider3 slider=”5″]
CHAPTER ELEVEN
DIRECTORSHIP
11.0.0: Who is a director………………………………………………………….147
11.1.0: Who is not a director………………………………………………………147
11.2.0: Implication of not being duly appointed as directors……………….……147
11.3.0: Types of directors………………………………………………………….148
11.3.1.0: Executive director……………………………………………………….148
11.3.2.0: Non Executive director…………………………………………………..148
11.3.3.0: Managing Director……………………………………………..…….….148
11.3.4.0: Chairman of the board of directors…………………………..…………149
11.3.5.0: Alternate Director……………………………………………………….149
11.3.6.0: Shadow Director……………………………………………………….…149
11.3.7.0: Nominee Director………………………………………………………..149
11.3.8.0: Life Director…………………………………………………………….150
11.3.9.0: First Director……………………………………………………..….…..150
11.3.10.0: Casual Director………………………………………………………….150
11.4.0: Number of director………………………………………………………..151
11.5.0: Appointment of first director…………………………………………..…151
11.6.0: Appointment of subsequent directors…………………………………….151
11.7.0: Resolution for appointment……………………………………………….151
11.8.0: Disqualification for directorship………………………………………….152
11.9.0: Vacation of office of directorship…………………………………………152
11.10.0: Age of director……………………………………………………………152
11.11.0: Duties of directors……………………………………………………….153
11.12.0: Fiduciary duties………………………………………………………….153
11.13.0: Remuneration of directors……………………………………………….157
11.14.0: Remuneration of managing director………………………………….…157
11.15.0: Retirement and rotation of director…………………………………………157
11.15.1.0: Exception of retirement and rotation rule…………………………….158
11.16.0: Removal of directors……………………………………………………..158
11.17.0: Post removal steps/consequential steps………………………………….160
11.18.0: Further points to note on removal of directors………………………….160
11.19.0: Draft on removal of director………………………………………….…160
11.20.0: Publications required of director………………………………………..164
11.21.0: Board of directors meeting………………………………………………164
11.22.0: Sample draft of notice of board of directors meeting…………………..165
11.23.0: Special Notice…………………………………………………………….165

CHAPTER TWELVE
COMPANY SECRETARY
12.0.0: Who appoints company secretary……………………………….………..167
12.1.0: Status of company…………………………………………………….……167
12.2.0: Company Secretary…………………………………………………….….168
12.3.0: Who can be a secretary………………………………………………..….168
12.4.0: Corporate Affairs Commission Form CAC 2.1 particulars of persons who is the company Secretary of a company…………………………………………….169
12.5.0: Duties of company secretary………………………………………………170
12.6.0: Some of the statutory filing at CAC…………………………………….….171
12.7.0: Company Secretary and fiduciary duties…………………………………173
12.8.0: Dual position as director and secretary /legal adviser……………………173
12.9.0: Dual position as director/legal adviser……………………………………173
12.10.0: Resignation and removal of a company secretary………………..……..174
12.11.0: Procedure for removal of a company secretary………………………….174
12.12.0: Vacancy in the office of company secretary…………………………….175
12.13.0: Certain publication in respect of directors………………………..…….175
12.13.1.0: Register of director’s shareholding……………………………………175
12.13.2.0: Register of directors and secretaries…………………………………..175
12.13.3.0: Particulars of directors in Trade catalogue…………………………….176
12.13.4.0:Register of contracts for which directors have interest…………..……176
12.14.0: Draft of instrument of appointment of first directors……………….….176

CHAPTER THIRTEEN
SCOPE OF CORPORATE GOVERNANCE
13.0.0: Membership of a company…………………………………………….….177
13.1.0: How to acquire membership………………………………………….…..177
13.1.1.0:Subscription………………………………………………………………177
13.1.2.0: Allotment…………………………………………………………………178
13.1.3.0: Transfer………………………………………………………………….178
13.1.4.0: Transmission……………………………………………………………..179
13.2.0: Capacity as to member…………………………………….………………179
13.3.0: Incidents/rights of membership……………………………………………179
13.4.0: Cessation of membership……………………………..…………………..180

CHAPTER FOURTEEN
MEETING
14.0.0: Types of General Meetings of a company…………………………….….181
14.0.1.0: Statutory meeting……………………………………………………..…181
14.0.2.0: Facts to note about statutory meeting……………………………….…..181
14.0.3.0: Business transacted at statutory meeting………………………………..181
14.0.4.0: Statutory report…………………………………………………….…….181
14.0.5.0: Contents of statutory report……………………………………………..182
14.0.6.0: Resolution on statutory report……………………………………….…182
14.1.0: Annual general meeting……………………………………………………183
14.1.1.0: Essential features of Annual General Meeting……………………..….183
14.1.2.0: Procedure /power of CAC to compel BOD to hold annual general meeting………………………………………………………………………….…184
14.1.3.0: Penalty for non-compliance…………………………………………….184
14.1.4.0: Business transacted at Annual general meeting……………………..…184
14.1.5.0: Ordinary business of Annual General Meeting…………………….….184
14.1.6.0: Special business of Annual General meeting……………………….…185
14.2.0: Extra-ordinary general meeting………….……………………………….186
14.2.1.0: Time and place for extra ordinary general meeting…………………….186
14.2.2.0: Who can convene an extra ordinary general meeting…………………..186
14.2.3.0: Procedure for member’s requisitioned extra ordinary general meeting……………………………………………………………………………..186
14.3.0: Where directors fail to convene……………………………………….….186
14.4.0: Expenses incurred by requisitionist……………………………………….187
14.5.0: Absence of quorum at a requisited meeting………………………………187
14.6.0: Court ordered meeting……………………………………………………..187
14.6.1.0: Orders court may make…………………………………………………188
14.7.0: Issues/ valid convening of meeting…………………………………..…..188
14.8.0: Venue of meeting………………………………………………………….189
14.9.0: Eligibility to attend company meeting……………..……………………..189
14.10.0: Notice of meeting……………………………………………………..…189
14.11.0: Contents of notice………………………………………………………189
14.12.0: Length of notice…………………………………………………………191
14.13.0: Service of notice…………………………………………………………191
14.14.0: Failure to give notice……………………………………………………191
14.15.0: Instances of Additional notice………………………………………….191
14.16.0: Current trend in corporate governance…………………………..…….191
14.17.0: Proxy……………………………………………………………….……192
14.17.1.0: How proxy is appointed………………………………………….…..192
14.17.2.0: Revocation of proxy’s appointment …………………………………192
14.18.0: Corporate representation………………………………………………..193
14.19.0: Issues affecting validity of proceeding at a meeting……………….….193
14.20.0: Quorum………………………………………………………………..…193
14.21.0: Voting…………………………………………………………………….195
14.21.0: Procedure upon demand of poll……………………………………………195
14.21.1.0: Restriction on demand of poll…………………………………………..196
14.21.2.0: Who can demand on poll………………………………………………..196
14.22.0: Chairman’s casting vote……………………………………….…………196
14.23.0: Result of vote………………………………………………….………….196
14.24.0: Resolutions……………………………………………………………….197
14.24.1.0: Types of resolution……………………………………………………..197
14.24.1.0: Ordinary resolution…………………………………………………….197
14.24.2.0: Written resolution………………………………………………………197
14.24.3.0: Duties of a Chairman at the general meeting………………………….198
14.24.4.0: Special resolution……………………………………………………….198
14.24.5.0: Examples of matters requiring special resolution…………………….198
14.24.6.0: Resolutions requiring special notice……………………………………199
14.24.7.0: Examples of resolutions that require special notice………………….199
14.24.8.0: Date of passing of resolution………………………………………..…199
14.24.9.0: Registration of certain resolution………………………………………200
14.24.10.0: Requisition of resolution…………………………………………..….200
14.25.0: Adjournment of meetings………………………………………………..200
14.26.0: Quorum at adjourned meetings…………………………………………..201
14.27.0: Minutes of proceedings……………………………………………….…..201
14.28.0: Forms of minutes…………………………………………………………201
14.29.0: Importance of minute books……………………………………………..202

CHAPTER FIFTEEN
ACCOUNTING RECORDS AND FINANCIAL STATEMENT
15.0.0: Duty to keep accounting records……………………………………………203
15.1.0: Essence of accounting records ……………………………………………..203
15.2.0: Contents of accounting records……………………………………………..203
15.3.0: Location and preservation of accounting records………………………..204
15.4.0: Directors power to fix financial year for company…………………….…204

CHAPTER SIXTEEN
FINANCIAL STATEMENTS

15.1.0: Financial statement……………………………………………………..…205
15.2.0: Forms and contents of financial statement………………………….……205
15.3.0: Group financial statement…………………………………………………206
15.4.0: Meaning of holding company and subsidiaries………………………..…206
15.5.0: Failure to deliver copy to those entitled…………………………………..206
15.6.0: Director’s duty to deliver financial statement at Annual General Meeting……………………………………………………………………………..207
15.7.0: False or defective financial statement……………………………….…..207

CHAPTER SEVEENTEEN
AUDIT IN CORPORATE GOVERNANCE
17.0.0: Appointment of auditors…………………………………………………..208
17.1.0: Internal and external auditors………………………………………….…..208
17.2.0: Who appoints first auditors…………………………………………….…..208
17.3.0: Failure of the directors to appoint first auditors…………………………209
17.4.0: Re-appointments of auditors……………………………………………….209
17.5.0: Vacancy based on non-appointment of auditor…………………….……209
17.6.0: Qualification of auditors……………………………………………….…..209
17.7.0: Prohibited persons…………………………………………………………210
17.8.0: A disqualified auditor in appointment……………………………………210
17.9.0: Auditor’s right to attend company meeting……………………………….210
17.10.0: Resignation of auditors………………………………………………..…211
17.11.0: Defamatory notice of resignation…………………………………….…211
17.12.0: Requisition for extra ordinary meeting…………………………………211
17.13.0: Auditor’s report or liabilities of auditor………………………………..212
17.14.0: On liability of auditors………………………………………………..…212
17.15.0: What if the board of directors fails to institute action………………….212
17.16.0: False statement to auditors……………………………………………….212
17.17.0: Audit committee………………………………………………………….213
17.18.0: Membership of audit committee………………………………………….213
17.19.0:Reappointment/remuneration/qualifications……………………….……213
17.20.0: Objectives and functions of the audit committee……………….………213
17.21.0: Provisions of the codes of corporate governance in Nigeria on audit committee……………………………………………………………………….….214
17.22.0: Contents of annual returns of a company having share capital other than small company…………………………………………………………………………….214
17.23.0: Documents to be annexed to annual returns…………………………….215
17.24.0: Obligation to file annual returns…………………….…………………..216
17.25.0: Forms of annual returns by companies……………………………….…216
17.26.0: Consequences of failure to file annual returns…………………………..217
17.27.0: Enforcement of returns……………………………………………………217
17.28.0: CAC strike off defunct company……………………………………..….218
17.29.0: Procedure to restore struck off company………………………………..218
17.30.0: Who may make the application/ power of court…………………………218
17.31.0: Existing liabilities if a company is struck off……………………….…..218
[smartslider3 slider=”5″]
CHAPTER EIGHTEEN
MAJORITY, MINORITY PROTECTION AND INVESTIGATION OF COMPANIES
17.0.0: Majority rule……………………………………………………………….219
18.1.0: Basis and the scope of the rule……………………………………….……219
18.2.0: Cases on minority protection………………………………………………219
18.3.0: The rationale for the rule in Foss v Harbottle………………………….….219
18.4.0: Codification of the rule in CAMA…………………………………………221
18.5.0: Principle of minority protection…………………………………….…….221
18.6.0: Exception to majority rule…………………………………………………221
18.7.0: Who can sue under the exceptions………………………………………..224
18.8.0: Possible reliefs………………………………………………………….….224
18.9.0: Types of action…………………………………………………………….225
18.9.1.0: Personal action……………………………………………………….….226
18.9.2.0: Representative action…………………………………………………….226
18.9.2.1.0: Reliefs……………………………………………………………….…226
18.9.2.2.0: Power of court to award cost ……………………………………..……226
18.9.3.0: Derivative action…………………………………………………………227
18.9.3.1.0: Who can be an applicant for derivative action……………………..….227
18.9.3.2.0: Procedure……………………………………………………………..….227
18.9.3.3.0: Conditions/ procedure for application for derivative action……….…228
18.9.3.4.0: Remedies the court can grant…………………………………………..228
18.9.4.0: Distinguishing features between personal action and derivative action………………………………………………………………………………..228
18.10.0: Title of court process…………………………………………………….229
18.11.0: Investigation of company…………………………………………….….229
18.12.0:Who can prompt an investigation into company’s affairs………………..229
18.13.0: Uses of the inspection report………………………………………..……230
18.14.0: Other statutory protection for minority ……………………..………….231



CHAPTER NINETEEN
COMPANY SECURITIES
19.0.0: What is share………………………………………………………..…..…232
19.1.0: Non voting and weighted shares…………………………………………..232
19.2.0: Exception of preferential shares……………………………………..……232
19.3.0: Classes of shares……………………………………………………..……232
19.4.0: Issuance of shares………………………………………………………….234
19.5.0: Issues of shares at a premium……………………………………………..235
19.6.0: The need for share premium account………………………………….….235
19.7.0: Issues of shares at discount………………………………………….……235
19.8.0: Authorized share capital……………………………………………….…236
19.9.0: Issue share capital…………………………………………………………236
19.10.0: Fully paid up shares……………………………………………………..236
19.11.0: Unpaid capital……………………………………………………………236
19.12.0: Unissued shares/ reserve capital …………………………………….…236
19.13.0: Call on shares…………………………………………………………….236
19.14.0: Lien on shares……………………………………………………………237
19.15.0: Payment for shares……………………………………………………….237
19.16.0: Acquisition of shares……………………………………………………..237
19.17.0: Transfer of shares…………………………………………………….….238
19.18.0: Method of transfer………………………………………………………..238
19.19.0: Procedure for transfer of shares………………………………………….238
19.20.0: Effects of endorsement certificate lodged……………………………….239
19.21.0: Refusal by the company to recognize and register instrument of transfer………………………………………………………………………………240
19.22.0: Rectification of register of members……………………………….…….240
19.23.0: Items/ requirements for filing return of allotment…………….……..…..241

CHAPTER TWENTY
DEBENTURE
20.0.0: What is debenture……………………………………………………….….242
20.1.0: Types of debenture…………………………………………………….……242
20.1.1.0: Perpetual debenture……………………………………………………….242
20.1.2.0: Convertible debenture…………………………………………….………242
20.1.3.0: Secured or naked debenture………………………………..…………….242
20.1.4.0: Redeemable debenture………………………………………….………..242
20.1.5.0: Bearer debenture……………………………………………………….…243
20.1.6.0: Registered debenture…………………………………………………..…243
20.2.0: Charge securing a debenture………………………………………………..243
20.3.0: Fixed charge…………………………………………………………..……243
20.4.0: Floating charge……………………………………………………………..244
20.5.0: Registration of charges………………………………………………..……244
20.6.0: Effect of non-registration of charges………………………………………..245
20.7.0: Remedy upon non-registration………………………………………….…..245
20.8.0: Records kept by company upon issue of debenture………………….….246
20.9.0: Procedure on creation of charge securing debentures………………………246
20.10.0: Corporate Affairs Commission Form CAC 8 particulars of charge…….248
20.11.0: Remedies of debenture holders……………………………………………249

CHAPTER TWENTY – 0NE
FLOTATION OF SECURITIES AND COLLECTIVE INVESTMENT SCHEME
21.0.0: What is flotation……………………………………………………….….250
21.1.0: Financial market……………………………………………………….……250
21.2.0: Money market……………………………………………………………….250
21.3.0: Capital market………………………………………………………..……..250
21.4.0: Advantages of capital market to money market…………………………….251
21.5.0: Registration of a legal practitioner as capital market solicitor……….….251
21.6.0: Regulatory authorities and applicable laws……………………………..….251
21.7.0: Applicable laws……………………………………………………………..252
21.8.0: Nigerian Capital Market………………………………………………..…..252
21.9.0: The primary market…………………………………………………………..252
21.10.0: Initial public offer…………………………………………………………253
21.11.0: Subsequent public offer………………………………………………..….253
21.12.0: Right issue…………………………………………………………………..253
21.13.0: Hybrid issue…………………………………………………………….…253
21.14.0: Secondary market…………………………………………………………254
21.15.0: Investment opportunities in the Nigerian capital market……………..…254
21.16.0: Who can offer securities to the public……………………………….….254
21.17.0: Capital Market operators and consultants………………………………..255
21.18.0: Capital corporate bodies registered with SEC…………………………..255
21.19.0: Capital corporate consultants/ professionals registered with SEC………255
21.20.0: The role of the capital market…………………………………………….256
21.21.0: Method of offer of securities to the public………………………..…….256
21.21.1.0: Direct offer for sale………………………………………….………..256
21.21.2.0: Offer for sale……………………………………………………………257
21.21.3.0: Difference between direct offer for sale and offer for sale…………..257
21.21.4.0: Placement………………………………………………………………..257
21.21.5.0: Conditions for placement by company……………………………..….258
21.21.6.0: Placing…………………………………………………………………..258
21.21.7.0: Placement and placing……………………………………………………258
21.21.8.0: Right issue………………………………………………………………..259
21.21.9.0: Challenges of right of issue………………………………………………259
21.22.0: Roles of solicitor in public offer of securities…………………………….259
21.23.0: The procedure for public offer of shares………………………………..260
21.24.0: Registration of securities with SEC ……………………………………..261
21.25.0: All professional must consent……………………………………………261
21.26.0: Prospectus…………………………………………………………..………262
21.26.1.0: What is prospectus…………………………………………………..….262
21.26.2.0: Purpose and why prospectus……………………………………….…..262
21.26.3.0: Forms of prospectus………………………………………………….…263
21.26.4.0: Contents of prospectus……………………………………………….…263
21.26.5.0: Procedure for issue of the prospectus……………………………….…264
21.26.6.0: Date and publication of prospectus…………………………………..…264
21.26.7.0: Deemed prospectus………………………………………………………265
21.27.0: Collective Investment scheme…………………………………………….266
21.27.1.0: Defining collective investment scheme…………………………………266
21.27.2.0: Features of a collective investment scheme……………………………267
21.27.3.0: Types of collective investment scheme……………………………..….267
21.28.0: Unit trust scheme…………………………………………………..………267
21.28.1.0: Essential elements of a unit trust scheme…………………………..….268
21.29.0: Difference between a company and unit investment…………………..…269
21.30.0: Investment trust fund/ ethical mutual investment……………………..….269
21.31.0: Real estate investment trust……………………………………………….269
21.31.1.0: Features for real estate investment scheme………………………….…270
21.32.0: Community savings scheme…………………………………………..….270
21.33.0: Bonds………………………………………………………………………270
21.34.0: Who can issue government bond………………………………….……..270
21.35.0: Conditions for issuance of government bonds…………………………….271
21.36.0: Global depository receipt………………………………………………….271

CHAPTER TWENTY TWO
COMPANY PROCEEDINGS
22.0.0: Types of disputes involving companies………….……………………..…..272
22.1.0: Jurisdiction…………………………………………………………………..272
22.2.0: Rules applicable……………………………………………………….……273
22.3.0: Company disputes/ applicable under CAMA ………….…………………..273
22.4.0: Modes of commencing corporate actions…………………………………..273
22.4.1.0: Applications to be commenced by originating motion………………274
22.4.2.0: Applications to be commenced by petition………………………….274
22.4.3.0: Application to be commenced by originating summons……………275
22.5.0: Effect of defect in commencing with proper originating process………275
22.6.0:Service of originating processes on companies…………………………..276
22.7.0: Service of other documents……………………………………………….277
22.8.0: Common seal………………………………………………………………278
22.9.0: Official seal…………..……………………………………………………278
22.10.0: Authentication of documents………………………………………..….278
22.11.0: Commercial disputes involving companies…………………………..…278
22.12.0: Labour disputes…………………………………………………………..279
22.13.0: Investment disputes………………………………………………………279
22.14.0: ADR process under section 26 NIPC ACT……………………….………279
22.15.0:Capital market disputes……………………………………………………280
22.16.0: Jurisdiction of Investment and Securities Tribunal…………………….280
22.17.0: Proceedings at the Investment and Securities Tribunal………….…….280
22.18.0: Jurisdiction issue between Federal High Court and Investment and Securities Tribunal……………………………………………………………………………281
22.19.0: ADR in matters involving companies ………….………………………281



CHAPTER TWENTY THREE
CORPORATE RESTRUCTURING
23.0.0: Internal corporate restructuring………………………………………….…282
23.0.1.0: Arrangement and compromise……………………………………………282
23.0.2.0: Increase and reduction of sales capital……………………………………284
23.0.3.0: Share reconstruction and reconstruction………………………………….284
23.0.4.0: Buy out……………………………………………………………………284
23.0.5.0: Management buyout………………………………………………’’’’’…284
23.0.6.0: Employee buyout ……………………………………………………..…285
23.0.7.0: Arrangement on sale…………………………………………………..…285
23.0.8.0: Difference between arrangement on sale and arrangement on compromise…………………………………………………………………………285
23.0.9.0: Procedure for arrangement on sale……………………………………..285
23.1.0: Ethical issues………………………………………………………….….287
23.2.0: External options in corporate restructuring……………………………….288
23.3.0: Reasons for external options in corporate restructuring……………….….288
23.4.0: Options in external restructuring………………………………………….288
23.4.1.0: Mergers/ Amalgamation…………………………………………..……288
23.4.2.0: Steps towards approval of merger by SEC ………………………..…..290
23.4.3.0: Procedure for immediate and large mergers……………………….…..290
23.4.4.0: Post merger compliance……………………………………………..…292
23.4.5.0: Post merger inspection………………………………………………….292
23.4.6.0: Revocation of merger……………………………………………………292
23.4.7.0: Take-over…………………………………………………………….….293
23.4.8.0: Documents to be filed with a take-over bid………………………….…293
23.4.9.0: Acquisition………………………………………………………………293
23.4.10.0: Purchase and Assumption………………………………………………294



CHAPTER TWENTY- FOUR
WINDING UP, CESSATION AND DISSOLUTION OF COMPANIES, BUSINESS NAME AND INCORPORATED TRUSTESS RESPECTIVELY
24.0.0: Winding up of companies……………………………………………..295
24.1.0: Applicable laws………………………………………………………..295
24.2.0: Regulatory agencies……………………………………………………295
24.3.0: Difference between liquidation and dissolution of a company………..…296
24.4.0: Modes of winding up.………………………………………………….…296
24.5.0: Courts with jurisdiction………………………………………………..…296
24.6.0: Point of commencement of winding up proceedings………….…………296
24.7.0: Effect of commencement of winding up proceedings……………………296
24.8.0: Effect of winding up proceeding on the company……………………….297
24.9.0: Effect of winding up order ……………………………………………….297
24.10.0: Dissolution of a company………………………………………………..298
24.11.0: Effect of non compliance………………………………………………..298
24.12.0: Effect of dissolution order………………………………………………299
24.13.0: Compulsory winding up of the court…………………………………….299
24.13.1.0: Member’s special resolution for compulsory winding up…….………….299
24.13.2.0: Default made in delivering statutory report…………………………….300
24.13.3.0: Reduction of members below two…………………………………….…300
24.13.4.0: Inability to pay debts………………………………………………..……300
24.13.5.0: Exceptions……………………………………………………………….301
24.13.6.0: Winding upon just and equitable grounds………………………………301
24.14.0: Who may petition winding up…………………………………………….302
24.15.0: Sample draft of winding up petition………………………………………..302
24.16.0: Procedure for compulsory winding up……………………………………..303
24.17.0: Staying of winding up after winding up order……………………………..304
24.18.0: Appointment of liquidator……………………………………………….…304
24.18.1.0: Powers of liquidator in winding up by the court….……………………..304
24.19.0: Voluntary winding up………………………………………………………304
24.19.1.0: When a company can be wound up voluntarily…………………………305
24.19.2.0: Types of voluntary winding up………………………………………….305
24.19.2.1.0: Members’ voluntary winding up………………………………………305
24.19.2.2.0: Procedure for members’ voluntary winding u…………………………305
24.19.2.3.0: Circumstances where members’ voluntary winding up will be converted to creditors’ voluntary winding up ………………………………………………..307
24.19.2.4.0: Requirements for members’ voluntary winding up……………………307
24.19.3.0: Creditors voluntary winding up…………………………..……………..308
24.19.3.1.0: Procedure for creditors voluntary winding up…………………………308
24.19.4.0: Consequences of a voluntary winding up……………………………….310
24.20.0: Winding up subject to the supervision of the court…………….…………310
24.20.1.0: Procedure for winding up subject to the supervision of the court……….311
24.20.2.0: Effect of supervision order……….………………………………………311
24.21.0: Major officers of winding up………………………………………………311
24.21.1.0: Liquidators……………………………………………………………….312
24.21.1.1: Disqualification for appointment as liquidator…………………………..312
24.21.1.2: Other powers of a liquidator……………………………………………..312
24.21.2.0: Official receiver…………………………………………………………..313
24.21.3.0: Provisional liquidator…………………………………………………….313
24.21.4.0: Receiver……………..…………………………………………………..313
24.21.5.0: Receiver manager……………………………………………….…..313
24.21.6.0: Special manager…………………………………………………….314
24.21.7.0: Powers of the receiver/ manger………………………………………314
24.22.0: The order/priority of payments of liabilities upon winding up of a company…………………………………………………………………………314
24.23.0: Winding up of business/ partnership under part B of CAMA………….315
24.23.1.0: Dissolution of a sole proprietorship or partnership registered under part B of CAMA……………..……………………………………………………………..315
24.23.2.0: Dissolution of partnership………………….………………………….316
24.23.3.0: Procedure for dissolution of partnership………………………………317
24.24.0: Winding up of non-business/ organizations ( Incorporated trustees/ associations ) under part C of CAMA……………………………..……………..318
24.24.1.0: Who can bring petition for dissolution………………………………318
24.24.2.0: Grounds for dissolution………………….……………………………318
24.24.3.0: The procedure for dissolution………………………………………….318
24.24.4.0: Notice of dissolution…………………………………………………….318
24.24.5.0: Distribution of assets of a dissolved Incorporated trustee………………319

Reviews

There are no reviews yet.

Be the first to review “SYNOPTIC GUIDE ON CORPORATE LAW PRACTICE IN NIGERIA”

Content missing

No more offers for this product!

General Inquiries

There are no inquiries yet.