COMPANIES AND ALLIED MATTERS ACT - PLACplacng.org/lawsofnigeria/laws/C20.pdf · COMPANIES AND...

COMPANIESANDALLIEDMATTERSACT

ARRANGEMENTOFSECTIONS

PARTA

Companies

PARTI

CorporateAffairsCommission

SECTION

1.EstablishmentoftheCorporateAffairsCommission.

2.MembershipoftheCommission.

3.Tenureofoffice.

4.Remunerationandallowance.

5.ProceedingsoftheCommission.

6.Disclosureofinterest.

7.Functions.

8.AppointmentofRegistrarGeneral.

9.Appointmentofstaff.

10.Righttoappearincourt.

11.ServiceintheCommissiontobepensionable.

12.FundoftheCommission.

13.ExpenditureoftheCommission.

14.Annualaccounts,auditandestimates.

15.Annualreport.

16.Regulations.

17.MeaningofcertainwordsusedinthisPart.

PARTII

Incorporationofcompaniesandincidentalmatters

CHAPTER1

FormationofCompany

18.Righttoformacompany.

19.Partnership,etc.,ofmorethantwentymemberswhenpermitted.

20.Capacityofindividualtoformcompany.

21.Typesofcompanies.

22.Privatecompany.

23.Consequencesofdefaultincomplyingwithconditionsconstitutingaprivatecompany.

24.Publiccompany.

25.Unlimitedcompanytohavesharecapital.

26.Companylimitedbyguarantee.

Memorandumofassociation

27.Requirementswithrespecttothememorandumofacompany.

28.Formofmemorandum.

Nameofcompany

29.Nameasstatedinthememorandum.

30.Prohibitedandrestrictednames.

31.Changeofnameofcompany.

32.Reservationofname.

Articlesofassociation

33.Articlesforregulatingcompanies.

34.Formandcontentsofarticles.

Registrationofcompanies

35.Documentsofincorporation.

36.Registration.

37.Effectofregistration.

Capacityandpowersofcompanies

38.Powersofcompanies.

39.Effectofultraviresacts.

40.Effectofrelianceonrestrictionsinthememorandum.

Effectofmemorandumandarticles

41.Effectofmemorandumandarticles.

Member'srighttocopyofmemorandumandarticles

42.Member'srighttocopiesofmemorandum,etc.

43.Copiesofmemorandumissuedtoembodyalterations.

Alterationofmemorandumandarticles

44.Restrictiononalterationofmemorandum.

45.Alterationofmemorandum.

46.Modeofalterationofbusinessorobjects.

47.Powertoalterprovisionsinthememorandumincertaincases.

48.Alterationofarticles.

49.Limitationofliabilitytocontributetosharecapitalifmemorandum,etc.,altered.

CHAPTER2

Conversionandreregistrationofcompanies

50.Reregistrationofprivatecompanyaspublic.

51.Reregistrationofcompanylimitedbysharesasunlimited.

52.Reregistrationofunlimitedaslimitedbyshares.

53.Reregistrationofpubliccompanyasprivate.

CHAPTER3

Foreigncompanies

54.ForeigncompaniesintendingtocarryonbusinessinNigeria.

55.Penalties.

56.Powertoexemptforeigncompanies.

57.Annualreport.

58.Exemptedforeigncompanytohavestatusofunregisteredcompany.

59.Penaltiesforfalseinformation.

60.Applicationofcertainsectionstoforeigncompanies.

CHAPTER4

Promoters

61.Personspromotingacompany.

62.Dutiesandliabilitiesofapromoter.

PARTIII

Actsbyoronbehalfofthecompany

Exerciseofcompany'spowers

63.Divisionofpowersbetweengeneralmeetingandboardofdirectors.

64.Delegationtocommitteesandmanagingdirectors.

Liabilityforactsofthecompany

65.Actsofgeneralmeeting,boardofdirectors,orofmanagingdirectors.

66.Actsofofficersoragents.

67.Whenprovisionexempting,etc.,officerfromliabilitytothecompanyisvoid.

Constructivenoticeofregistereddocuments

68.Abolitionofconstructivenoticeofregistereddocuments.

69.Presumptionsofregularity.

70.Liabilityofcompanynotaffectedbyfraudorforgeryofofficer.

Company'scontracts

71.Formofcontract.

72.Preincorporationcontracts.

73.Billsofexchangeandpromissorynote.

74.Commonsealofthecompany.

75.Officialsealforuseabroad.

76.Powersofattorney.

Authenticationandserviceofdocuments

SECTION

77.Authenticationofdocuments.

78.Serviceofdocumentsoncompanies.

PARTIV

Membershipofcompany

79.Definitionofmember.

80.Capacitytobeamember.

81.Rightofmembertoattendmeetingsandvote.

82.Personationofmembers.

Registerofmembers

83.Registerofmembers.

84.Locationofregister.

85.Indexofmemberstobekept.

86.Entryoftrustsprohibited.

87.Inspectionofregisterandindex.

88.Consequencesoffailurebyagent'sdefaulttokeepregister.

89.Powertocloseregister.

90.Powerofcourttorectifyregister.

91.Registertobeevidence.

Liabilityofmembers

92.Liabilityofmembers.

93.Liabilityforcompanydebtswheremembershipisbelowlegalminimum.

Disclosureofbeneficialinterestinshares

94.Powerofcompanytorequiredisclosure.

95.Obligationofdisclosurebysubstantialshareholderinpubliccompany.

96.Personceasingtobeasubstantialshareholdertonotifycompany.

97.Registerofinterestsinshares.

98.Registrationofintereststobedisclosed.

PARTV

Sharecapital

Minimumsharecapital

99.Authorisedminimumsharecapital.

Alterationofsharecapital

100.Alterationofsharecapitalbyconsolidation,etc.

101.Noticerequiredwheresharesandstockconsolidated,etc.

102.Increaseofsharecapitalandnoticeofincrease.

103.Increaseofpaidupcapitalonincreaseofshares.

104.Powerforunlimitedcompanytoprovidereservesharecapitalonreregistration.

Reductionofsharecapital

105.Restrictiononreductionofissuedsharecapital.

106.Specialresolutionforreductionofsharecapital.

107.Applicationtocourtfororderofconfirmation.

108.Courtorderconfirmingreduction.

109.Registrationoforderandminutesofreduction.

110.Liabilityofmembersonreducedshares.

111.Penaltyforconcealingnameofcreditor,etc.

Miscellaneousmattersrelatingtocapital

112.Dutyofdirectorsonseriouslossofcapital.

113.Powertopayinterestoutofcapitalincertaincases.

PARTVI

Shares

Natureofshares

114.Rightsandliabilitiesattachedtoshares.

115.Sharesastransferableproperty.

116.Prohibitionofnonvotingandweightedshares.

Issueofshares

117.Powerofcompaniestoissueshares.

118.Issueofclassesofshares.

119.Issuewithrightsattached.

120.Issueofsharesatapremium.

121.Issueofsharesatadiscount.

122.Issueofredeemablepreferenceshares.

123.Validationofimproperlyissuedshares.

Allotmentofshares

124.Authoritytoallotshares.

125.Methodofapplicationandallotment.

126.Allotmentasacceptanceofcontract.

127.Paymentonallotment.

128.Effectofirregularallotment.

129.Returnastoallotments.

Commissionsanddiscounts

130.Prohibitionofpaymentofcommissions,discountsoutofsharesandcapital.

131.Powertopaycommissionincertaincases.

132.Statementinbalancesheetastocommission.

Callonandpaymentforshares

133.Callonshares.

134.Reserveliabilityofcompanyhavingsharecapital.

135.Paymentforshares.

136.Meaningofpaymentincash.

137.Paymentotherthanincash.

138.Powertopaydifferentamountsonshares.

Lienandforfeitureofshares

139.Lienonshares.

140.Forfeitureofshares.

Classesofshares

141.Powertovaryrights.

142.Applicationforcancellationofvariation.

143.Rightofapreferencesharetomorethanonevote.

144.Constructionofclassrights.

Numberingofshares

145.Sharestobenumbered.

Sharecertificates

146.Issueofsharecertificates.

147.Effectofsharecertificate.

148.Probate,etc.,asevidenceofgrant.

149.Abolitionofsharewarrants.

Conversionofsharesintostock

150.Conversionofsharesintostock.

Transferandtransmission

151.Transferofshares.

152.Entryinregisteroftransfers.

153.Noticeofrefusaltoregister.

154.Transferbypersonalrepresentative.

155.Transmissionofshares.

156.Protectionofbeneficiaries.

157.Certificationoftransfers.

Transactionsbycompanyinrespectofitsownshares

158.Redemptionofredeemablepreferenceshares.

159.Prohibitionoffinancialassistancebycompanyforacquisitionofitsshares.

160.Acquisitionbyacompanyofitsownshares.

161.Conditionsforpurchasebyacompanyofitsownshares.

162.Limitonnumberofsharesacquired.

163.Enforceabilityofcontracttoacquireshares.

164.Reissueofsharesacquired.

165.Acquisitionofsharesofholdingcompany.

PARTVII

Debentures

Creationofdebentureanddebenturestock

166.Powertoborrowmoney,tochargepropertyandtoissuedebenture.

167.Documentsoftitletodebenturesorcertificateofdebenturestock.

168.Statementstobeincludedindebentures.

169.Effectofstatementsindebentures.

170.Enforcementofcontractsrelatingtodebentures.

Typesofdebentures

171.Perpetualdebentures.

172.Convertibledebentures.

173.Securedornakeddebentures.

174.Redeemabledebentures.

175.Powertoreissueredeemeddebenturesincertaincases.

176.Rightsofdebentureholders.

177.Meetingsofdebentureholders.

Fixedandfloatingcharges

178.Meaningof"floating"and"fixed"charges.

179.Priorityoffixedoverfloatingcharge.

180.Powersofthecourt.

181.Advertisementofappointmentofreceiverandmanager.

182.Preferentialpaymenttodebentureholdersincertaincases.

Debenturetrustdeed

183.Executionofdebentureoftrustdeed.

184.Contentsofdebenturetrustdeed.

185.Contentsofdebenturecoveredbytrustdeed.

186.Trusteesfordebentureholders.

187.Disqualificationforappointmentastrusteeofdebenturetrustdeed.

188.Liabilityoftrusteesfordebentureholders.

189.Restrictionsontransferabilityofdebentures.

Provisionsastocompany'sregisterofcharges,debentureholdersandastocopiesofinstrumentscreatingcharges

190.Companytokeepcopiesofinstrumentscreatingcharges.

191.Company'sregisterofcharges.

192.Inspectionofregisterandcopiesofinstruments.

193.Registerofdebentureholders.

194.Inspectionofregisterofdebentures,etc.

195.Entryinregisteroftransfer.

196.Noticeofrefusaltoregister.

RegistrationofchargeswithCommission

197.Registrationofchargescreatedbycompanies.

198.Registerofparticularsofcharges.

199.Dutyofcompanytoregistercharges.

200.Dutyofcompanyacquiringpropertytoregistersubsistingcharges.

201.Existingcharges.

202.Chargestosecurefluctuatingamounts.

203.Endorsementofcertificateofregistrationondebentures.

204.Entriesofsatisfactionofcharges.

205.Rectificationofregister.

206.Registrationofappointmentorder,etc.

207.Inspectionofregisterandcopiesofinstruments.

Realisationofsecurity

208.Realisationofdebentureholder'ssecurity.

209.Remediesavailabletodebentureholders.

210.Applicationofcertainsections.

PARTVIII

Meetingsandproceedingsofcompanies

Statutorymeeting

211.Statutorymeeting.

212.Noncomplianceandpenalty.

Generalmeeting

213.Annualgeneralmeeting.

214.Businessestransactedatannualgeneralmeeting.

Extraordinarygeneralmeeting

215.Extraordinarygeneralmeeting.

216.Placeofmeeting.

Noticeofmeetings

217.Lengthofnoticeforcallingmeetings.

218.Contentsofnotice.

219.Personsentitledtonotice.

220.Serviceofnotice.

221.Failuretogivenotice.

222.Additionalnotice.

223.Powerofcourttoordermeetings.

Voting

224.Procedureofvoting.

225.Righttodemandpoll.

226.Votingonapoll.

227.Rightofattendanceatgeneralmeeting.

228.Attendanceatmeetings.

229.Objectionsastoqualificationtovote.

230.Proxies.

231.Corporationrepresentationatmeetingsofcompanies,etc.

232.Quorum.

Resolutions

233.Resolutions.

234.Writtenresolutions.

235.Circulationofmembers'resolutions.

236.Resolutionsrequiringspecialnotice.

237.Registrationandcopiesofcertainresolutions.

238.Effectofresolutionspassedatadjournedmeetings.

Miscellaneousmattersrelatingtomeetingsandproceedings

239.Adjournment.

240.Powersanddutiesofthechairmanofthegeneralmeeting.

241.Minutesofproceedingsandeffect.

242.Inspectionofminutebooksandcopies.

243.Classmeetings.

PARTIX

Directorsandsecretariesofthecompany

CHAPTER1

Directors

Meaningofdirectors

244.Meaningof"directors".

245.Shadowdirector.

Appointmentofdirectors

246.Numberofdirectors.

247.Appointmentoffirstdirectors.

248.Subsequentappointmentofdirectors.

249.Casualvacancy.

250.Liabilityofapersonwherenotdulyappointed.

251.Sharequalificationofdirectors.

252.Dutyofdirectorstodiscloseagetothecompany.

253.Provisionsastoinsolventpersonsactingasdirectors.

254.Restraintoffraudulentpersons.

255.Appointmentofdirectorforlife.

256.Righttoappointadirectoratanyage.

257.Disqualificationfordirectorship.

258.Vacationofofficeofdirector.

259.Rotationofdirectors.

260.Validityofactsofdirectors.

261.Modeofvotingonappointmentofdirectors.

Removalofdirectors

262.Removalofdirectors.

Proceedingsofdirectors

263.Proceedingsofdirectors.

264.Quorum.

265.Failuretohaveaquorum.

266.Noticeofmeeting.

Remunerationandotherpayments

267.Remunerationofdirectors.

268.Remunerationofamanagingdirector.

269.Prohibitionoftaxfreepaymentstodirectors.

270.Prohibitionofloanstodirectorsincertaincircumstances.

271.Paymentbycompanyforlossofoffice,etc.,tobeapproved.

272.Paymenttodirectorforlossofoffice,etc.,ortransferofpropertyillegal.

273.Directorstodisclosepaymentforlossofoffice,etc.,incertaincases.

274.Provisionssupplementarytosections271to273.

Disclosureofdirectors'interests

275.Registerofdirectors'shareholdings,etc.

276.Generaldutytogivenotice,etc.

277.Disclosurebydirectorsofinterestsincontracts.

278.Particularswithrespecttodirectorsintradecatalogues,etc.

Dutiesofdirectors

279.Dutiesofdirectors.

280.Conflictsofdutiesandinterests.

281.Multipledirectorships.

282.Dutyofcareandskill.

283.Legalpositionofdirectors.

Propertytransactionsbydirectors

284.Substantialpropertytransactionsinvolvingdirectors,etc.

285.Exceptionsfromsection284.

286.Liabilitiesarisingfromcontraventionofsection284.

287.Prohibitionofsecretbenefits.

Miscellaneousmattersrelatingtodirectors

288.Directorswithunlimitedliabilityinrespectofalimitedcompany.

289.Specialresolutionoflimitedcompanymakingliabilityofdirectorsunlimited.

290.Personalliabilityofdirectorsandofficers.

291.Director'scontractofemploymentformorethanfiveyears.

292.Registerofdirectorsandsecretaries.

CHAPTER2

Secretaries

293.Secretaries.

294.Avoidanceofactsdonebyapersonasdirectorandsecretary.

295.Qualificationofasecretary.

296.Appointmentandremovalofasecretary.

297.Fiduciaryinterestsofasecretary.

298.Dutiesofasecretary.

PARTX

Protectionofminorityagainstillegalandoppressiveconduct

Actionbyoragainstthecompany

299.Onlycompanymaysueforwrongorratifyirregularconduct.

300.Protectionofminority:injunctionanddeclarationincertaincases.

301.Personalandrepresentativeaction.

302.Definitionofmember.

303.Commencingderivativeaction.

304.Powersofthecourt.

305.Evidenceofshareholders'approvalnotdecisive.

306.Court'sapprovaltodiscontinue.

307.Nosecurityforcosts.

308.Interimcosts.

309.Definition.

Reliefonthegroundsofunfairlyprejudicialandoppressiveconduct

310.Application.

311.Groundsuponwhichanapplicationmaybemade.

312.Powersofthecourt.

313.Penaltyforfailuretocomplywithorderofthecourt.

Investigationofcompaniesandtheiraffairs

314.Investigationofacompanyonitsownapplicationorthatofitsmembers.

315.Otherinvestigationsofcompany.

316.Inspectors'powersduringinvestigation.

317.Productionofdocumentsandevidencetoinspectors.

318.Powerofinspectortocallfordirectors'bankaccounts.

319.Obstructionofinspectorstobetreatedascontemptofcourt.

320.Inspector'sreport.

321.Powertobringcivilproceedingsoncompany'sbehalf.

322.CriminalproceedingsandotherproceedingsbytheAttorneyGeneraloftheFederation.

323.PoweroftheCommissiontopresentwindinguppetition.

324.Expensesofinvestigation.

325.Inspectors'reporttobeusedasevidenceinlegalproceedings.

326.Appointment,etc.,ofinspectorstoinvestigateownershipofacompany.

327.Provisionsapplicabletoinvestigation.

328.Powertorequireinformationastopersonsinterestedinshares,etc.

329.Powertoimposerestrictionsonshares,etc.

330.Savingsforlegalpractitionersandbankers.

PARTXI

Financialstatementsandaudit

CHAPTER1

Financialstatements

Accountingrecords

331.Companiestokeepaccountingrecords.

332.Placeanddurationofrecords.

333.Penaltiesfornoncompliancewithsections331and332.

334.Directors'dutytoprepareannualaccounts.

Formandcontentofcompanyindividualandgroupfinancialstatements

335.Formandcontentofindividualfinancialstatements.

336.Groupfinancialstatementsofholdingcompany.

337.Formandcontentofgroupfinancialstatements.

338.Meaningof"holdingcompany","subsidiary"and"whollyownedsubsidiary".

339.Additionaldisclosurerequiredinnotestofinancialstatements.

340.Disclosureofloansinfavourofdirectorsandconnectedpersons.

341.Disclosureofloansetc.,toofficersofthecompanyandstatementsofamountoutstanding.

Directors'reports

342.Directors'report.

Procedureoncompletionoffinancialstatements

343.Signingofbalancesheetanddocumentstobeannexedthereto.

344.Personsentitledtoreceivefinancialstatementsasofright.

345.Directors'dutytolayanddeliverfinancialstatements.

346.Penaltyfornoncompliancewithsection345.

347.Defaultorderincaseofnoncompliance.

348.Penaltyforlayingordeliveringdefectivefinancialstatements.

349.Shareholders'righttoobtaincopiesoffinancialstatements.

Modifiedfinancialstatements

350.Entitlementtodeliverfinancialstatementsinmodifiedform.

351.Qualificationofasmallcompany.

352.Modifiedindividualfinancialstatements.

353.Modifiedfinancialstatementsofholdingcompany.

Publicationoffinancialstatements

354.Publicationbyacompanyoffullindividualorgroupfinancialstatements.

355.Publicationofabridgedfinancialstatements.

Supplementary

356.Powertoalteraccountingrequirements.

CHAPTER2

Audit

357.Appointmentofauditors.

358.Qualificationofauditors.

359.Auditors'report.

360.Auditors'dutiesandpowers.

361.Remunerationofauditors.

362.Removalofauditors.

363.Auditors'righttoattendcompany'smeetings.

364.Supplementaryprovisionsrelatingtoauditors.

365.Resignationofauditors.

366.Rightofresigningauditortorequisitioncompanymeeting.

367.Powersofauditorsinrelationtosubsidiaries.

368.Liabilityofauditorsfornegligence.

369.Falsestatementstoauditors.

PARTXII

Annualreturns

370.Annualreturnbycompanylimitedbysharesorguarantee.

371.Annualreturnbycompanyhavingsharesotherthansmallcompany.

372.Annualreturnbysmallcompany.

373.Annualreturnbycompanylimitedbyguarantee.

374.Timeforcompletionofannualreturn.

375.Documentstobeannexedtoannualreturn.

376.Certificatesbyprivatecompanyandsmallcompanyinannualreturn.

377.Exceptionincertaincasesofunlimitedcompaniesandsmallcompaniesfromrequirementsofsection375.

378.Penaltyfornoncompliancewithsections370to376.

PARTXIII

Dividendsandprofits

379.Declarationofdividendsandpaymentofinterimdividend.

380.Distributableprofits.

381.Restrictionondeclarationandpaymentofdividends.

382.Unclaimeddividends.

383.Reserveandcapitalisation.

384.Employees'sharesandprofitsharing.

385.Rightoftheshareholderstosuefordividends.

386.Liabilityforpayingdividendoutofcapital.

PARTXIV

Receiversandmanagers

Appointmentofreceiversandmanagers

387.Disqualificationforappointmentasareceiverormanager.

388.Powerofthecourttoappointofficialreceiverfordebentureholdersandothers.

389.Appointmentofreceiversandmanagersbythecourt.

390.Receiversandmanagersappointedoutofcourt.

391.Powerofareceiverormanagerappointedoutofcourttoapplytothecourtfordirections.

392.Notificationthatareceiverormanagerhasbeenappointed.

Duties,powersandliabilitiesofreceiversandmanagers

393.Duties,powers,etc.,ofreceiversandmanagers.

394.Liabilitiesofreceiversandmanagersoncontracts.

395.Powerofcourttofixremunerationonapplicationofliquidator.

Procedureafterappointment

396.Provisionsastoinformationwherereceiverormanagerappointed.

397.Specialprovisionsastostatementsubmittedtoreceiver.

Accountsbyreceiverormanager

398.DeliverytoCommissionofaccountsofreceiversandmanagers.

Dutyastoreturns

399.Enforcementofdutyofreceiversandmanagerstomakereturns,etc.

Constructionofreferences

400.Constructionofreferencestoreceiversandmanagers.

PARTXV

Windingupofcompanies

CHAPTER1

Preliminary

Modesofwindingup

401.Modesofwindingup.

Contributories

402.Liabilityascontributoriesofpresentandpastmembers.

403.Definitionofcontributory.

404.Natureofliabilityofcontributory.

405.Contributoriesincaseofdeathofmember.

406.Contributoriesincaseofbankruptcyofmember.

CHAPTER2

Windingupbythecourt

Jurisdiction

407.Jurisdictionastowindingup.

Casesinwhichcompanymaybewoundupbycourt

408.Circumstancesinwhichcompaniesmaybewoundupbycourt.

409.Definitionofinabilitytopaydebts.

Petitionsforwindingupandeffectsthereof

410.Provisionsastoapplicationforwindingup.

411.Powersofcourtonhearingpetition.

412.Powertostayorrestrainproceedingsagainstcompany.

413.Avoidanceofdispositionsofproperty,etc.,aftercommencementofwindingup.

414.Avoidanceofattachments,etc.

Commencementofwindingup

415.Commencementofawindingupbythecourt.

Consequencesofwindinguporder

416.CopyofordertobeforwardedtoCommission.

417.Actionsstayedonwindinguporder.

418.Effectofwindinguporder.

Officialreceiver

419.Definitionofofficialreceiver.

420.Statementofcompany'saffairstobesubmittedtoofficialreceiver.

421.Reportbyofficialreceiver.

Liquidators

422.Appointment,remunerationandtitleofliquidators.

423.Custodyofcompany'sproperty.

424.Vestingofpropertyofcompanyinliquidator.

425.Powersofliquidator.

426.Liquidatortogiveinformation,etc.,toofficialreceiver.

427.Exerciseandcontrolofliquidator'spowers.

428.Paymentsbyliquidatorintocompaniesliquidationaccount.

429.Audit,etc.,ofliquidator'saccount.

430.Bookstobekeptbyliquidator.

431.Releaseofliquidator.

432.Controloverliquidators.

Committeeofinspection,specialmanager,etc.

433.Powertoappointcommitteeofinspectionaftermeetingofcreditorsandothers.

434.Powers,etc.,ofcommitteeofinspection.

435.Powerswherenocommitteeofinspectionisappointed.

436.Powertoappointspecialmanager.

437.Officialreceiverasreceiverfordebentureholders,etc.

Generalpowersofcourtincaseofwindingupbycourt

438.Powertostaywindingup.

439.Settlementoflistofcontributoriesandapplicationofassets.

440.Deliveryofpropertytoliquidator.

441.Paymentsbycontributorytocompanyandsetoffallowance.

442.Powerofcourttomakecalls.

443.Powertoorderpaymentintocompanies'liquidationaccount.

444.Orderoncontributorytobeconclusiveevidence.

445.Powertoexcludecreditorsnotprovingintime.

446.Adjustmentofrightsofcontributories.

447.Inspectionofbooksbycreditorsandcontributories.

448.Powertoordercostsofwindinguptobepaidoutofassets.

449.Powertosummonpersonssuspectedofhavingpropertyofcompany,etc.

450.Powertoorderpublicexaminationofpromoters,etc.

451.Powertoarrestabscondingcontributory.

452.Powersofcourtcumulative.

453.Delegationtoliquidatorofcertainpowersofcourt.

454.Dissolutionofcompany.

Enforcementofandappealsfromorders

455.Powertoenforceorders.

456.Appealsfromorders.

CHAPTER3

Voluntarywindingup

Resolutionsforandcommencementofvoluntarywindingup

457.Circumstancesinwhichcompanymaybewoundupvoluntarily.

458.Noticeofresolutiontowindupvoluntarily.

459.Commencementofvoluntarywindingup.

Consequencesofvoluntarywindingup

460.Effectofvoluntarywindinguponbusiness,etc.,ofcompany.

461.Avoidanceoftransfer,etc.,aftercommencementofvoluntarywindingup.

Declarationofsolvency

462.Statutorydeclarationofsolvencywhereproposaltowindupvoluntarily.

Provisionsapplicabletoamembers'voluntarywindingup

463.Provisionsapplicabletomembers'voluntarilywindingup.

464.Powertoappoint,etc.,liquidators.

465.Powertofillvacancyinofficeofliquidators.

466.Liquidatortocallcreditors'meetingoninsolvency.

467.Liquidatortocallgeneralmeetingatendofeachyear.

468.Finalmeetinganddissolution.

469.Alternativeprovisionsastoannualandfinalmeetingsininsolvencycases.

470.Booksandaccountsduringmembers'voluntarywindingup.

Provisionsapplicabletoacreditor'svoluntarywindingup

471.Provisionsapplicabletocreditors'windingupvoluntarily.

472.Meetingofcreditors.

473.Appointmentofliquidatorandcesserofdirectors'powers.

474.Appointmentofcommitteeofinspection.

475.Fixingofliquidators'remuneration.

476.Powertofillvacancyintheofficeofliquidator.

477.Liquidatortocallmeetingsofcompanyandothersattheendofeachyear.

478.Finalmeetinganddissolution.

Provisionsapplicabletoeveryvoluntarywindingup

479.Provisionsapplicabletoeveryvoluntarywindingup.

480.Distributionofpropertyofcompany.

481.Powers,etc.,ofliquidatorineveryvoluntarywindingup.

482.Powerofcourttoappoint,etc.,liquidator.

483.Powertoapplytocourttodeterminequestionsorexercisepowers.

484.Costsofvoluntarywindingup.

485.Savingofrightsofcreditorsandcontributories.

CHAPTER4

Windingupsubjecttosupervisionofcourt

486.Powertoorderwindingupsubjecttosupervision.

487.Effectofpetitionforwindingupsubjecttosupervision.

488.Applicationofsections413and414.

489.Powerofcourttoappoint,etc.,liquidators.

490.Effectofsupervisionorder.

CHAPTER5

Provisionsapplicabletoeverymodeofwindingup

491.Liquidatortogivenoticeofappointment.

Proofandrankingofclaims

492.Debtsofalldescriptionsmaybeproved.

493.Applicationofbankruptcyrulesincertaincases.

494.Preferentialpayments.

Effectofwindinguponantecedentandothertransactions

495.Fraudulentpreference.

496.Liabilitiesandrightsofcertainfraudulentlypreferredpersons.

497.Avoidanceofattachments,etc.,onwindingupsubjecttosupervisionofthecourt.

498.Effectoffloatingcharge.

499.Disclaimerofonerousproperty.

500.Restrictionofrightsofcreditorastoexecution,etc.,onwindingupofcompany.

501.Dutyofsheriffastogoodstakeninexecution.

Offencesantecedenttoorincourseofwindingup

502.Offencesbyofficersofcompanyinliquidation.

503.Falsificationofbooks.

504.Fraudsbyofficersofcompaniesinliquidation.

505.Liabilitywhereproperaccountsnotkept.

506.Responsibilityforfraudulenttrading.

507.Powerofcourttoassessdamagesagainstdelinquentdirectors,etc.

508.Prosecutionofdelinquentofficersandmembersofacompany.

Supplementaryprovisionsastowindingup

509.Disqualificationsforappointmentasliquidator.

510.Corruptinducementaffectingappointmentasliquidator.

511.Enforcementofdutyofliquidatortomakereturns,etc.

512.Notificationthatacompanyisinliquidation.

513.Exemptionfromstampduty.

514.Booksofcompanytobeevidence.

515.Disposalofbooks,etc.,ofcompany.

516.Informationastopendingliquidationsanddisposalofunclaimedassets.

517.Resolutionspassedatadjournedmeetingsofcreditors,etc.

518.Powertomakeoverassetstoemployees.

Supplementarypowersofcourt

519.Meetingstoascertainwishesofcreditorsandothers.

520.Judicialnoticeofsignaturesofofficersofcourt,etc.

521.Judicialnoticeofsignaturesofcertaingovernmentofficials.

522.Specialcommissionersforreceivingevidence.

523.AffidavitsinNigeriaandelsewhere.

Provisionsastodissolution

524.Powerofcourttoavoiddissolutionofcompany.

525.PowerofCommissiontostrikeoffdefunctcompany.

526.Propertyofdissolvedcompanytobedeclaredasbonavacantia.

Centralaccounts

527.Companiesliquidationaccountdefined.

528.Investmentofsurplusfundsingovernmentsecurities,etc.

529.Separateaccountsofparticularestates.

Returnsbyofficersofcourts

530.Returnsbyofficersinwindingup.

Accountstobepreparedannually

531.Annualaccountsofcompanywindingupanddisposal.

CHAPTER6

Windingupofunregisteredcompanies

532.Windingupofunregisteredcompany.

533.Contributoriesinwindingupofunregisteredcompany.

534.Powerofcourttostayorrestrainproceedings.

535.Action,etc.,stayedonwindinguporder.

536.ProvisionsofthisParttobecummulative.

PARTXVI

Arrangementsandcompromise

537.Definitionof"arrangement".

538.Arrangementonsaleofcompany'spropertyduringmembers'voluntarywindingup.

539.Powertocompromisewithcreditorsandmembers.

540.Informationastocompromisewithcreditorsandmembers.

PARTXVII

MiscellaneousandsupplementalApplicationofthisPartofthisAct

541.ApplicationofthisPartofthisAct.

542.Acttooverridememorandum,articles,etc.

543.ApplicationofActtocompaniesunderformerenactments.

544.ApplicationofActtocompaniesregisteredbutnotformed.

545.ApplicationofActtounlimitedcompaniesregisteredunderformerenactments.

546.RestrictedapplicationofActtounregisteredcompanies.

Administration

547.Registeredandheadofficeofcompany.

548.Publicationofnamebycompany.

549.Fees.

550.Formofregister,etc.

551.Inspection,etc.,ofdocumentskeptbytheCommission.

552.Rulesofcourtforwindingupofcompanies,etc.

553.Certaincompaniestopublishstatementinprescribedform.

Legalproceedings,etc.

554.Prosecutionofoffences.

555.Production,etc.,ofbookswhereoffencessuspected.

556.Costsinactionsbycertainlimitedcompanies.

557.Savingforprivilegedcommunications.

558.Powerofcourttograntreliefincertaincases.

559.Penaltyforimproperuseofcertainwords.

560.Penaltyforfalsestatements.

561.Extendedeffectofpenaltyforoffenceoffraudulenttrading.

562.Applicationoffines.

563.ApplicationbytheCommissiontothecourtfordirections.

Miscellaneous

564.Schedules,Tables,andForms;alterationandapplication.

565.EnforcementofdutyofcompanytomakereturnstoCommission.

566.Powerofcompanytoprovideforemployeesoncessationortransferofbusiness.

567.InterpretationofcertainwordsusedinPartAofthisAct.

568.Repealandsavings.

PARTB

Businessnames

569.TheCommissiontoadministerbusinessnames.

570.Establishmentofbusinessnames'registryineachState.

571.AppointmentofRegistrarandotherofficers.

572.FunctionsofRegistrarandAssistantRegistrars.

573.Registrationofbusinessnames.

574.Procedureforregistration.

575.Entryofbusinessnameintheregister.

576.Certificateofregistration.

577.Registrationofchanges.

578.Removalofnamefromregister.

579.Prohibitedandrestrictednames.

580.Searches.

581.Copiesofentriesinregisters.

582.Publicationoftruename.

583.Liabilityofpersonindefault.

584.Offencesandpenalties.

585.Regulations.

586.Validityofpreviousregistration.

587.Annualreturns.

588.InterpretationofwordsusedinthisPart.

589.Repealof1961No.17.

PARTC

Incorporatedtrustees

590.Incorporationoftrusteesofcertaincommunities,bodiesandassociations.

591.Methodofapplication.

592.Qualificationoftrustees.

593.Constitution.

594.Advertisementandobjections.

595.Registrationandcertificate.

596.Effectofregistrationandcertificate.

597.Changesofnamesorobjects.

598.Alterationofprovisionsoftheconstitution.

599.Replacementandappointmentofadditionaltrustees.

600.ChangesincontraventionofcertainprovisionsofthisPartofthisAct.

601.Councilorgoverningbody.

602.Exerciseofpowersoftrustee.

603.Applicationofincomeandproperty.

604.Commonseal.

605.Contractofcorporatebody.

606.Documentsandinspection.

607.Annualreturns.

608.DissolutionofacorporatebodyformedunderthisAct.

609.Regulations.

610.InterpretationofwordsusedinthisPart.

611.RepealofCap.98of1958Edition.

612.Validityofpreviousregistrations.

PARTD

Shorttitle

613.Shorttitle.

SCHEDULES

FIRSTSCHEDULE

TablesA,B,CandD

SECONDSCHEDULE

Formandcontentofcompaniesfinancialstatements

THIRDSCHEDULE

Miscellaneousmatterstobedisclosedinnotestocompanyfinancialstatements

FOURTHSCHEDULE

Particularsincompanyfinancialstatementsofloanandothertransactionsfavouringdirectorsandofficers

FIFTHSCHEDULE

Matterstobedealtwithindirector'sreport

SIXTHSCHEDULE

Matterstobeexpresslystatedinauditorsreport

SEVENTHSCHEDULE

Modifiedfinancialstatementsofcompaniesqualifyingassmallcompanies

EIGHTHSCHEDULE

Contentsandformofannualreturnsofacompanyhavingsharesotherthanasmallcompany

NINTHSCHEDULE

Annualreturnofasmallcompany

TENTHSCHEDULE

Annualreturnofacompanylimitedbyguarantee

ELEVENTHSCHEDULE

Powersofreceiversandmanagersofthewholeorsubstantiallythewholeofthecompany'sproperty

TWELFTHSCHEDULE

Provisionsnotapplicableonwindingupundersupervisionofcourt

THIRTEENTHSCHEDULE

ProvisionofthisActapplyingtounregisteredcompanies

FOURTEENTHSCHEDULE

Formsofstatementtobepublishedbybankingandinsurancecompaniesanddeposit,providentorbenefitsocieties

FIFTEENTHSCHEDULE

FeestobepaidformattersunderPartAoftheAct

COMPANIESANDALLIEDMATTERSACT

AnActtoestablishtheCorporateAffairsCommission,providefortheincorporationofcompaniesandincidentalmatters,registrationofbusinessnamesandtheincorporationoftrusteesofcertaincommittees,bodiesandassociations.

[1990No.1.]

[Commencement.] [2ndJanuary,1990]

PARTA

Companies

PARTI

CorporateAffairsCommission

1.EstablishmentoftheCorporateAffairsCommission

(1)ThereisherebyestablishedunderthisAct,abodytobeknownastheCorporateAffairsCommission(inthisActreferredtoas"theCommission").

(2)TheCommissionshallbe

(a)abodycorporatewithperpetualsuccessionandacommonseal;

(b)capableofsuingandbeingsuedinitscorporatename;and

(c)capableofacquiring,holdingordisposingofanyproperty,movableorimmovable,forthepurposeofcarryingoutitsfunctions.

(3)TheheadquartersoftheCommissionshallbesituatedintheFederalCapitalTerritory,Abuja,andthereshallbeestablishedanofficeoftheCommissionineachStateoftheFederation.

2.MembershipoftheCommission

TheCommissionshallconsistofthefollowingmembers,thatis

(a)achairmanwhoshallbeappointedbythePresidentontherecommendationoftheMinister,beingapersonwhobyreasonofhisability,experienceorspecialisedknowledgeofcorporate,industrial,commercial,financialoreconomicmattersorofbusinessorprofessionalattainmentswouldinhisopinionbecapableofmakingoutstandingcontributionstotheworkoftheCommission;

(b)onerepresentativeofthebusinesscommunity,appointedbytheMinisterontherecommendationoftheNigerianAssociationofChambersofCommerce,Industries,MinesandAgriculture;

(c)onerepresentativeofthelegalprofession,appointedbytheMinisterontherecommendationoftheNigerianBarAssociation;

(d)onerepresentativeoftheaccountancyprofession,appointedbytheMinisterontherecommendationoftheInstituteofCharteredAccountantsofNigeria;

(e)onerepresentativeoftheManufacturersAssociationofNigeria,appointedbytheMinisterontherecommendationoftheAssociation;

(f)onerepresentativeoftheSecuritiesandExchangeCommissionnotbelowthegradeofDirectororitsequivalent;

(g)onerepresentativeofeachofthefollowingFederalMinistries,thatis

(i)Commerce;

(ii)Justice;

(iii)Industry,and

(h)theRegistrarGeneraloftheCommission.

[1992No.40.]

3.Tenureofoffice

(1)Subjecttotheprovisionsofsubsection(2)ofthissection,apersonappointedasamemberoftheCommission(notbeinganexofficiomember)shallholdofficeforthreeyearsandshallbeeligibleforreappointmentforonefurthertermofthreeyears.

(2)TheMinistermay,withtheapprovalofthePresidentatanytimeremoveanymemberoftheCommissionfromofficeiftheMinisterisoftheopinionthatitisnotintheinterestoftheCommissionforthemembertocontinueinofficeandshallnotifythememberinwritingtothateffect.

[1992No.40.]

(3)ThemembersoftheCommissionexcepttheRegistrarGeneralshallbeparttimemembersoftheCommission.

(4)AnymemberoftheCommissionshallceasetoholdofficeif

(a)hebecomesofunsoundmindorisincapableofcarryingouthisduties;

(b)hebecomesbankruptorhasmadearrangementwithhiscreditors;

(c)heisconvictedofafelonyoranyoffenceinvolvingdishonesty;

(d)heisguiltyofseriousmisconductrelatingtohisduties;or

(e)inthecaseofapersonpossessedofprofessionalqualifications,heisdisqualifiedorsuspended(otherthanathisownrequest)frompractisinghisprofessioninanypartofNigeriabytheorderofanycompetentauthoritymadeinrespectofhimpersonally.

4.Remunerationandallowance

MembersoftheCommissionappointedundersection2(a),(b),(c),(d),(e),(f),(g)and(h)shallbepaidsuchremunerationandallowancesasthePresidentmay,fromtimetotime,direct.

5.ProceedingsoftheCommission

(1)Subjecttothissectionandsection27oftheInterpretationAct,theCommissionmaymakestandingordersregulatingitsproceedings.

[Cap.123.]

(2)ThechairmanshallpresideateverymeetingoftheCommissionbut,inhisabsence,thememberspresentshallelectoneoftheirnumberpresenttopresideatthemeeting.

(3)ThequorumformeetingsoftheCommissionshallbefive.

[1992No.40.]

(4)TheCommissionmayappointanyofitsofficerstoactassecretaryatanyofitsmeetings.

6.Disclosureofinterest

(1)AmemberoftheCommissionwhoisdirectlyinterestedinanycompanyorenterprise,theaffairsofwhicharebeingdeliberateduponbytheCommission,orisinterestedinanycontractmadeorproposedtobemadebytheCommissionshall,assoonaspossibleaftertherelevantfactshavecometohisknowledge,disclosethenatureofhisinterestatameetingoftheCommission.

(2)Adisclosure,undersubsection(1)ofthissection,shallberecordedintheminutesoftheCommission,andthemembershall

(a)nottakepartaftersuchdisclosureinanydeliberationordecisionoftheCommissionwithregardtothesubjectmatterinrespectofwhichhisinterestisthusdisclosed;

(b)beexcludedforthepurposeofconstitutingaquorumoftheCommissionforanysuchdeliberationordecision.

7.Functions

(1)ThefunctionsoftheCommissionshallbeto

(a)subjecttosection541ofthisAct,administerthisActincludingtheregulationandsupervisionoftheformation,incorporation,registration,management,andwindingupofcompaniesunderorpursuanttothisAct;

(b)establishandmaintainacompanysregistryandofficesinalltheStatesoftheFederationsuitablyandadequatelyequippedtodischargeitsfunctionsunderthisActoranyotherlawinrespectofwhichitischargedwithresponsibility;

(c)arrangeorconductaninvestigationintotheaffairsofanycompanywheretheinterestsoftheshareholdersandthepublicsodemand;

(d)performsuchotherfunctionsasmaybespecifiedbyanyActorenactment;and

(e)undertakesuchotheractivitiesasarenecessaryorexpedientforgivingfulleffecttotheprovisionsofthisAct.

(2)Nothinginthissectionshallaffectthepowers,dutiesorjurisdictionoftheSecuritiesandExchangeCommissionundertheInvestmentsandSecuritiesAct.

[Cap.124.]

8.AppointmentofRegistrarGeneral

(1)ThereshallbeappointedbytheCommissionaRegistrarGeneralwhoshallbequalifiedtopractiseasalegalpractitionerinNigeriaandhasbeensoqualifiedfornotlessthan10yearsandinaddition,hashadexperienceincompanylawpracticeoradministrationfornotlessthan8years.

(2)TheRegistrarGeneralshallbethechiefexecutiveoftheCommissionandshallbesubjecttothedirectivesoftheCommissionandshallholdofficeonsuchtermsandconditionsasmaybespecifiedinhisletterofappointmentandonsuchothertermsandconditionsasmaybedetermined,fromtimetotime,bytheCommissionwiththeapprovalofthePresident.

(3)TheRegistrarGeneralshallbetheaccountingofficerforthepurposeofcontrollinganddisbursingamountsfromthefundestablishedpursuanttosection12ofthisAct.

9.Appointmentofstaff

TheCommissionmayappointsuchotherstaffasitmaydeemnecessaryfortheefficientperformanceofthefunctionsoftheCommissionunderorpursuanttothisAct.

10.Righttoappearincourt

Notwithstandingtheprovisionsofanyenactmenttothecontrary,apersonappointedtotheofficeofRegistrarGeneralundersection8ofthisActorapersonappointedundersection9ofthisActwhoisalegalpractitioner

shall,whilesoappointed,beentitledtorepresenttheCommissionasalegalpractitionerforthepurposeandinthecourseofhisemployment.

11.ServiceintheCommissiontobepensionable

ServiceintheCommissionshallbeapprovedserviceforthepurposeofthePensionsActandaccordingly,officersandotherpersonsemployedintheCommissionshallinrespectoftheirserviceintheCommissionbeentitledtopensions,gratuitiesandotherretirementbenefitsenjoyedbypersonsholdingequivalentgradesinthepublicserviceoftheFederation,sohoweverthatnothinginthisActshallpreventtheappointmentofapersontoanyofficeontermswhichprecludethegrantofapensionandgratuityinrespectofthatoffice.

[Cap.P4.]

12.FundoftheCommission

TheCommissionshallestablishafundwhichshallconsistofsuchsumsasmaybeallocatedtoitbytheFederalGovernmentandsuchotherfundsasmayaccruetoitinthedischargeofitsfunctions.

13.ExpenditureoftheCommission

TheCommissionmay,fromtimetotime,applytheproceedsofthefundestablishedinpursuanceofsection12ofthisAct

(a)tothecostofadministrationoftheCommission;

(b)forreimbursingmembersoftheCommissionoranyCommitteesetupbytheCommissionforsuchexpensesasmaybeauthorisedorapprovedbytheCommission,inaccordancewiththerateapprovedinthatbehalfbythePresident;

(c)tothepaymentofsalaries,feesorotherremunerationorallowances,pensionsandgratuitiespayabletotheemployeesoftheCommission;

(d)forthemaintenanceofanypropertyacquiredorvestedintheCommission;and

(e)for,andinconnectionwith,alloranyofthefunctionsoftheCommissionunderthisAct.

14.Annualaccounts,auditandestimates

(1)TheCommissionshallkeepproperaccountsandproperrecordsinrelationtheretoandshallprepareinrespectofeachyearastatementofaccountsinsuchformasthePresidentmaydirect.

(2)TheaccountsoftheCommissionshallbeauditednotlaterthansixmonthsaftertheendoftheyearbyauditorsappointedbytheCommissionfromthelistandinaccordancewithguidelinessuppliedbytheAuditorGeneralfortheFederation;andthefeesoftheauditorsandtheexpensesoftheauditgenerallyshallbepaidfromthefundsoftheCommission.

(3)TheCommissionshallcausetobeprepared,notlaterthan30Septemberineachyear,anestimateoftheexpenditureandincomeoftheCommissionduringthenextsucceedingyearandwhenpreparedtheyshallbesubmittedthroughtheMinistertothePresident.

15.Annualreport

TheCommissionshall,notlaterthan30Juneineachyear,submittothePresidentareportontheactivitiesoftheCommissionduringtheimmediateprecedingyear,andshallincludeinsuchreporttheauditedaccountsoftheCommission.

16.Regulations

TheMinistermay,withtheapprovalofthePresident,makeregulationsgenerallyforthepurposeofthisActandinparticular,withoutprejudicetothegeneralityoftheforegoingprovisions,makeregulations

(a)prescribingtheformsandreturnsandotherinformationrequiredunderthisAct;

(b)prescribingtheprocedureforobtaininganyinformationrequiredunderthisAct;

(c)requiringreturnstobemadewithintheperiodspecifiedthereinbyanycompanyorenterprisetowhichthisActapplies;and

(d)prescribinganyfeespayableunderthisPart,thatis,PartAofthisAct.

17.MeaningofcertainwordsusedinthisPart

InthisPartofthisAct

"chairman"meansthechairmanoftheCommission;and

"member"meansanymemberoftheCommissionincludingthechairman.

PARTII

Incorporationofcompaniesandincidentalmatters

CHAPTER1

FormationofCompany

18.Righttoformacompany

AsfromthecommencementofthisAct,anytwoormorepersonsmayformandincorporateacompanybycomplyingwiththerequirementsofthisActinrespectofregistrationofsuchcompany.

19.Partnership,etc.,ofmorethan20memberswhenpermitted

(1)Nocompany,association,orpartnershipconsistingofmorethan20personsshallbeformedforthepurposeofcarryingonanybusinessforprofitorgainbythecompany,association,orpartnership,orbytheindividualmembersthereof,unlessitisregisteredasacompanyunderthisAct,orisformedinpursuanceofsomeotherenactmentinforceinNigeria.

(2)Nothinginthissectionshallapplyto

(a)anycooperativesocietyregisteredundertheprovisionsofanyenactmentinforcemNigeria;or

(b)anypartnershipforthepurposeofcarryingonpractice

(i)aslegalpractitioners,bypersonseachofwhomisalegalpractitioner;or

(ii)asaccountantsbypersonseachofwhomisentitledbylawtopractiseasanaccountant.

(3)Ifatanytimethenumberofmembersofacompany,associationorpartnershipexceeds20incontraventionofthissectionanditcarriesonbusinessformorethan14dayswhilethecontraventioncontinues,everypersonwhoisamemberofthecompany,associationorpartnershipduringthetimethatitsocarriesonbusinessafterthose14daysshallbeliabletoafineofN25foreverydayduringwhichthedefaultcontinues.

20.Capacityofindividualtoformcompany

(1)Subjecttosubsection(2)ofthissection,anindividualshallnotjoinintheformationofacompanyunderthisActif

(a)heislessthan18yearsofage;or

(b)heisofunsoundmindandhasbeensofoundbyacourtinNigeriaorelsewhere;or

(c)heisanundischargedbankrupt;or

(d)heisdisqualifiedundersection254ofthisActfrombeingadirectorofacompany.

(2)Apersonshallnotbedisqualifiedunderparagraph(a)ofsubsection(1)ofthissection,iftwootherpersonsnotdisqualifiedunderthatsubsectionhavesubscribedtothememorandum.

(3)AcorporatebodyinliquidationshallnotjoinintheformationofacompanyunderthisAct.

(4)Subjecttotheprovisionsofanyenactmentregulatingtherightsandcapacityofalienstoundertakeorparticipateintradeorbusiness,analienoraforeigncompanymayjoininformingacompany.

21.Typesofcompanies

(1)Anincorporatedcompanymaybeacompany

(a)havingtheliabilityofitsmemberslimitedbythememorandumtotheamount,ifany,unpaidonthesharesrespectivelyheldbythem(inthisActtermed"acompanylimitedbyshares");or

(b)havingtheliabilityofitsmemberslimitedbythememorandumtosuchamountasthemembersmayrespectivelytherebyundertaketocontributetotheassetsofthecompanyintheeventofitsbeingwoundup(inthisActtermed"acompanylimitedbyguarantee");or

(c)nothavinganylimitontheliabilityofitsmembers(inthisActtermed"anunlimitedcompany").

(2)Acompanyofanyoftheforegoingtypesmayeitherbeaprivatecompanyorapubliccompany.

22.Privatecompany

(1)Aprivatecompanyisonewhichisstatedinitsmemorandumtobeaprivatecompany.

(2)Everyprivatecompanyshallbyitsarticlesrestrictthetransferofitsshares.

(3)Thetotalnumberofmembersofaprivatecompanyshallnotexceed50,notincludingpersonswhoarebonafideintheemploymentofthecompany,orwerewhileinthatemploymentandhavecontinuedafterthedeterminationofthatemploymenttobe,membersofthecompany.

(4)Wheretwoormorepersonsholdoneormoresharesinacompanyjointly,theyshallforthepurposeofsubsection(3)ofthissectionbetreatedasasinglemember.

(5)Aprivatecompanyshallnot,unlessauthorisedbylaw,invitethepublicto

(a)subscribeforanysharesordebenturesofthecompany;or

(b)depositmoneyforfixedperiodsorpayableatcall,whetherornotbearinginterest.

23.Consequencesofdefaultincomplyingwithconditionsconstitutingaprivatecompany

(1)Subjecttosubsection(2)ofthissection,wheredefaultismadeincomplyingwithanyoftheprovisionsofsection22ofthisActinrespectofaprivatecompany,thecompanyshallceasetobeentitledtotheprivilegesandexemptionsconferredonprivatecompaniesbyorunderthisActandthisActshallapplytothecompanyasifitwerenotaprivatecompany.

(2)Ifacourt,ontheapplicationofthecompanyoranyotherpersoninterested,issatisfiedthatthefailuretocomplywiththeprovisionsofsection22ofthisActwasaccidentalorduetoinadvertenceortosomeothersufficientcause,orthatonothergroundsitisjustandequitabletograntrelief,thecourtmay,onsuchtermsandconditionsasmayseemtoittobejustandexpedient,orderthatthecompanyberelievedfromtheconsequencesmentionedinsubsection(1)ofthissection.

24.Publiccompany

Anycompanyotherthanaprivatecompanyshallbeapubliccompanyanditsmemorandumshallstatethatitisapubliccompany.

25.Unlimitedcompanytohavesharecapital

AsfromthecommencementofthisAct,anunlimitedcompanyshallberegisteredwithasharecapital;andwhereanexistingunlimitedcompanyisnotregisteredwithasharecapital,itshall,notlaterthantheappointedday,alteritsmemorandumsothatitbecomesanunlimitedcompanyhavingasharecapitalnotbelowtheminimumsharecapitalpermittedundersection99ofthisAct.

26.Companylimitedbyguarantee

(1)Whereacompanyistobeformedforpromotingcommerce,art,science,religion,sports,culture,education,research,charityorothersimilarobjects,andtheincomeandpropertyofthecompanyaretobeappliedsolelytowardsthepromotionofitsobjectsandnoportionthereofistobepaidortransferreddirectlyorindirectlytothemembersofthecompanyexceptaspermittedbythisAct,thecompanyshallnotberegisteredasacompanylimitedbyshares,butmayberegisteredasacompanylimitedbyguarantee.

(2)AsfromthecommencementofthisAct,acompanylimitedbyguaranteeshallnotberegisteredwithasharecapitalandeveryexistingcompanylimitedbyguaranteeandhavingasharecapitalshall,notlaterthantheappointedday,alteritsmemorandumsothatitbecomesacompanylimitedbyguaranteeandnothavingasharecapital.

(3)Inthecaseofacompanylimitedbyguarantee,everyprovisioninthememorandumorarticlesorinanyresolutionofthecompanypurportingtogiveanypersonarighttoparticipateinthedivisibleprofitsofthecompanyotherwisethanasamemberorpurportingtodividethecompany'sundertakingintosharesorinterestsshallbevoid.

(4)Acompanylimitedbyguaranteeshallnotbeincorporatedwiththeobjectofcarryingonbusinessforthepurposeofmakingprofitsfordistributiontomembers.

(5)ThememorandumofacompanylimitedbyguaranteeshallnotberegisteredwithouttheauthorityoftheAttorneyGeneraloftheFederation.

[1990No.32.]

(6)Ifanycompanylimitedbyguaranteecarriesonbusinessforthepurposeofdistributingprofits,allofficersandmembersthereofwhoarecognisantofthefactthatitissocarryingonbusinessshallbejointlyandseverallyliableforthepaymentanddischargeofallthedebtsandliabilitiesofthecompanyincurredincarryingonsuchbusiness,andthecompanyandeverysuchofficerandmembershallbeliabletoafinenotexceedingN100foreverydayduringwhichitcarriesonsuchbusiness.

(7)ThetotalliabilityofthemembersofacompanylimitedbyguaranteetocontributetotheassetsofthecompanyintheeventofitsbeingwoundupshallnotatanytimebelessthanN10,000.

(8)Subjecttocompliancewithsubsection(6)ofthissection,thearticlesofassociationofacompanylimitedbyguaranteemayprovidethatmemberscanretireorbeexcludedfrommembershipofthecompany.

(9)If,inbreachofsubsection(6)ofthissection,thetotalliabilityofthemembersofanycompanylimitedbyguaranteeshallatanytimebelessthanN10,000,everydirectorandmemberofthecompanywhoiscognisantofthebreachshallbeliabletoafineofN50foreverydayduringwhichthedefaultcontinues.

(10)If,uponthewindingupofacompanylimitedbyguarantee,thereremainsafterthedischargeofallitsdebtsandliabilitiesanypropertyofthecompany,thesameshallnotbedistributedamongthemembersbutshallbetransferredtosomeothercompanylimitedbyguaranteehavingobjectssimilartotheobjectsofthecompanyorappliedtosomecharitableobjectandsuchothercompanyorcharityshallbedeterminedbythememberspriortothedissolutionofthecompany.

Memorandumofassociation

27.Requirementswithrespecttothememorandumofacompany

(1)Thememorandumofeverycompanyshallstate

(a) thenameofthecompany;

(b) thattheregisteredofficeofthecompanyshallbesituatedinNigeria;

(c) thenatureofthebusinessorbusinesseswhichthecompanyisauthorisedtocarryon,or,ifthe companyisnotformedforthepurposeofcarryingonbusiness,thenatureoftheobjectorobjectsfor whichitisestablished;

(d) therestriction,ifany,onthepowersofthecompany;

(e) thatthecompanyisaprivateorpubliccompany,asthecasemaybe;

(f) thattheliabilityofitsmembersislimitedbysharesorbyguaranteeorisunlimited,asthecasemay be.

(2)Ifthecompanyhasasharecapital

(a) thememorandumshallalsostatetheamountofauthorisedsharecapital,notbeinglessthan N10,000inthecaseofaprivatecompanyandN500,000inthecaseofapubliccompany,withwhich thecompanyproposedtoberegistered,andthedivisionthereofintosharesofafixedamount;

(b) thesubscribersofthememorandumshalltakeamongthematotalnumberofsharesofavalueofnot lessthan25percentoftheauthorisedsharecapital;and

(c) eachsubscribershallwriteoppositetohisnamethenumberofshareshetakes.

(3)Asubscriberofthememorandumwhoholdsthewholeoranypartofthesharessubscribedbyhimintrustforanyotherpersonshalldiscloseinthememorandumthatfactandthenameofthebeneficiary.

(4)Thememorandumofacompanylimitedbyguaranteeshallalsostatethat

(a)theincomeandpropertyofthecompanyshallbeappliedsolelytowardsthepromotionofitsobjects,andthatnoportionthereofshallbepaidortransferreddirectlyorindirectlytothemembersofthecompanyexceptaspermittedbyorunderthisAct;and

(b)eachmemberundertakestocontributetotheassetsofthecompanyintheeventofitsbeingwoundupwhileheisamemberorwithinoneyearafterheceasestobeamemberforpaymentofdebtsandliabilitiesofthecompany,andofthecostsofwindingup,suchamountasmayberequirednotexceedingaspecifiedamountandthetotalofwhichshallnotbelessthanNl0.000,

(5)Thememorandumshallbesignedbyeachsubscriberinthepresenceofatleastonewitnesswhoshallattestthesignature.

(6)Thememorandumshallbestampedasadeed.

28.Formofmemorandum

Subjecttotheprovisionsofsection27ofthisAct,theformofamemorandumofassociationof

(a) acompanylimitedbyshares;

(b) acompanylimitedbyguarantee;and

(c) anunlimitedcompany,

shallbeasspecifiedinTablesB,CandDrespectivelyintheFirstScheduletothisAct,orasnearthatformascircumstancesadmit.

[FirstSchedule.TablesB,CandD.]

Nameofcompany

29.Nameasstatedinthememorandum

(1)Thenameofaprivatecompanylimitedbysharesshallendwiththeword"Limited".

(2)Thenameofapubliccompanylimitedbysharesshallendwiththewords"PublicLimitedCompany".

(3)Thenameofacompanylimitedbyguaranteeshallendwiththewords"(LimitedbyGuarantee)"inbrackets.

(4)Thenameofanunlimitedcompanyshallendwiththeword"Unlimited".

(5)Acompanymayusetheabbreviations"Ltd","PLC""(Ltd/Gte)"and"Ultd"forthewords"Limited","PublicLimitedCompany","(LimitedbyGuarantee)"and"Unlimited"respectivelyinthenameofthecompany.

30.Prohibitedandrestrictednames

(1)NocompanyshallberegisteredunderthisActbyanamewhich

(a)isidenticalwiththatbywhichacompanyinexistenceisalreadyregistered,orsonearlyresemblesthatnameastobecalculatedtodeceive,exceptwherethecompanyinexistenceisinthecourseofbeingdissolvedandsignifiesitsconsentinsuchmannerastheCommissionrequires;or

(b)containsthewords"ChamberofCommerce"unlessitisacompanylimitedbyguarantee;or

(c)intheopinionoftheCommissioniscapableofmisleadingastothenatureorextentofitsactivitiesorisundesirable,offensiveorotherwisecontrarytopublicpolicy;or

(d)intheopinionoftheCommissionwouldviolateanyexistingtrademarkorbusinessnameregisteredinNigeriaunlesstheconsentoftheownerofthetrademarkorbusinessnamehasbeenobtained.

(2)ExceptwiththeconsentoftheCommission,nocompanyshallberegisteredbyanamewhich

(a)includestheword"Federal","National","Regional","State","Government",oranyotherwordwhichintheopinionoftheCommissionsuggestsoriscalculatedtosuggestthatitenjoysthepatronageoftheGovernmentoftheFederationortheGovernmentofaStateinNigeria,asthecasemaybe,oranyMinistryorDepartmentofGovernment;or

(b)containstheword"Municipal"or"Chartered"orintheopinionoftheCommissionsuggests,oriscalculatedtosuggest,connectionwithanymunicipalityorotherlocalauthority;or

(c)containstheword"Cooperative"orthewords"BuildingSociety";or

(d)containstheword"Group"or"Holding".

31.Changeofnameofcompany

(1)Ifacompany,throughinadvertenceorotherwise,onitsfirstregistrationoronitsregistrationbyanewname,isregisteredunderanameidenticalwiththatbywhichacompanyinexistenceispreviouslyregistered,orsonearlyresemblingitastobelikelytodeceive,thefirstmentionedcompanymay,withtheapprovaloftheCommission,changeitsname;andiftheCommissionsodirects,withinsixmonthsofitsbeingregisteredunderthatname,thecompanyconcernedshallchangeitsnamewithinaperiodofsixweeksfromthedateofthedirectionorsuchlongerperiodastheCommissionmayallow.

(2)Ifacompanymakesdefaultincomplyingwithadirectionundersubsection(1)ofthissection,itshallbeliabletoafineofN25foreverydayduringwhichthedefaultcontinues.

(3)Anycompanymay,byspecialresolutionandwiththeapprovaloftheCommissionsignifiedinwriting,changeitsname:

Providedthatnosuchapprovalshallberequiredwheretheonlychangeinthenameofacompanyisthesubstitutionofthewords"PublicLimitedCompany"fortheword"Limited"orviceversaontheconversionofaprivatecompanyintoapubliccompanyorapubliccompanyintoaprivatecompanyinaccordancewiththeprovisionsofthisAct.

(4)NothinginthisActshallprecludetheCommissionfromrequiringacompanytochangeitsnameifitisdiscoveredthatsuchanameconflictswithanexistingtrademarkorbusinessnameregisteredinNigeriapriortotheregistrationofthecompanyandtheconsentoftheownerofthetrademarkorbusinessnamewasnotobtained.

(5)Whereacompanychangesitsname,theCommissionshallenterthenewnameontheregisterinplaceoftheformername,andissueacertificateofincorporationalteredtomeetthecircumstancesofthecase.

(6)Thechangeofnameshallnotaffectanyrightsorobligationsofthecompany,orrenderdefectiveanylegalproceedingsbyoragainstthecompany,andanylegalproceedingsthatcouldhavebeencontinuedorcommencedagainstitorbyitinitsformernamemaybecontinuedorcommencedagainstorbyitinitsnewname.

(7)AnyalterationmadeinthenameunderthissectionshallbepublishedbytheCommissionintheGazette.

(8)AcertificateorpublicationintheGazetteunderthissectionshallbeevidenceofthealterationtowhichitrelates.

32.Reservationofname

(1)TheCommissionmayonwrittenapplicationandonpaymentoftheprescribedfeereserveanamependingregistrationofacompanyorachangeofnamebyacompany.

(2)Suchreservationasismentionedinsubsection(1)ofthissectionshallbeforsuchperiodastheCommissionshallthinkfitnotexceeding60days,andduringtheperiodofreservationnoothercompanyshallberegisteredunderthereservednameorunderanyothernamewhichintheopinionoftheCommissionbearstooclosearesemblancetothereservedname.

Articlesofassociation

33.Articlesforregulatingcompanies

Thereshallberegistered,withthememorandumofassociation,articlesofassociationsignedbythesubscriberstothememorandumofassociation,andprescribingregulationsforthecompany.

34.Formandcontentsofarticles

(1)Theformandcontentsofthearticlesofassociationofapubliccompanyhavingasharecapital,aprivatecompanyhavingasharecapital,acompanylimitedbyguaranteeandanunlimitedcompanyshallbeasinPartsI,II,

IIIandIVrespectively,ofTableAintheFirstScheduletothisActwithsuchadditions,omissionsoralterationsasmayberequiredinthecircumstances.

[FirstSchedule.PartsI,II,IIIandIV.TableA.]

(2)Inthecaseofacompanylimitedbyguarantee,thearticlesofassociationshallstatethenumberofmemberswithwhichthecompanyproposestoberegisteredforthepurposeofenablingtheCommissiontodeterminethefeespayableonregistration.

(3)Thearticlesofassociationshall

(a)beprinted;

(b)bedividedintoparagraphsnumberedconsecutively;and

(c)besignedbyeachsubscriberofthememorandumofassociationinthepresenceofatleastonewitnesswhoshallattestthesignature.

(4)Thearticlesshallbearthesamestampdutyasiftheywerecontainedinadeed.

Registrationofcompanies

35.Documentsofincorporation

(1)AsfromthecommencementofthisAct,acompanyshallbeformedinthemannersetoutinthissection.

(2)ThereshallbedeliveredtotheCommission

(a)thememorandumofassociationandarticlesofassociationcomplyingwiththeprovisionsofthisPartofthisAct;

(b)thenoticeoftheaddressoftheregisteredofficeofthecompanyandtheheadofficeifdifferentfromtheregisteredoffice:

ProvidedthatapostalboxaddressoraprivatebagaddressshallnotbeacceptedbytheCommissionastheregisteredoffice;

(c)astatementintheprescribedformcontainingthelistandparticularstogetherwiththeconsentofthepersonswhoaretobethefirstdirectorsofthecompany;

(d)astatementoftheauthorisedsharecapitalsignedbyatleastonedirector;and

(e)anyotherdocumentrequiredbytheCommissiontosatisfytherequirementsofanylawrelatingtotheformationofacompany.

(3)AstatutorydeclarationintheprescribedformbyalegalpractitionerthatthoserequirementsofthisActfortheregistrationofacompanyhavebeencompliedwithshallbeproducedtotheCommission,anditmayacceptsuchadeclarationassufficientevidenceofcompliance:

ProvidedthatwheretheCommissionrefusesadeclaration,itshallwithin30daysofthedateofreceiptofthedeclarationsendtothedeclarantanoticeofitsrefusalgivingthegroundsofsuchrefusal.

36.Registration

(1)TheCommissionshallregisterthememorandumandarticlesunlessinitsopinion

(a)theydonotcomplywiththeprovisionsofthisAct;or

(b)thebusinesswhichthecompanyistocarryon,ortheobjectsforwhichitisformed,oranyofthem,areillegal;or

(c)anyofthesubscriberstothememorandumisincompetentordisqualifiedinaccordancewithsection20ofthisAct;or

(d)thereisnoncompliancewiththerequirementofanyotherlawastoregistrationandincorporationofacompany;or

(e)theproposednameconflictswithorislikelytoconflictwithanexistingtrademarkorbusinessnameregisteredinNigeria.

(2)AnypersonaggrievedbythedecisionoftheCommissionundersubsection(1)ofthissection,maygivenoticetotheCommissionrequiringittoapplytothecourtfordirectionsandtheCommissionshallwithin21daysofthereceiptofsuchnoticeapplytothecourtforthedirections.

(3)TheCommissionmay,inordertosatisfyitselfasprovidedinsubsection(1)(c)ofthissection,byinstrumentinwritingrequireapersonsubscribingtothememorandumtomakeandlodgewiththeCommission,astatutorydeclarationtotheeffectthatheisnotdisqualifiedundersection20ofthisActfromjoininginformingacompany.

(4)StepstobetakenunderthisActtoincorporateacompanyshallnotincludeanyinvitationtosubscribeforsharesorotherwisehowsoeveronthebasisofaprospectus.

(5)Uponregistrationofthememorandumandarticles,theCommissionshallcertifyunderitsseal

(a)thatthecompanyisincorporated;

(b)inthecaseofalimitedcompany,thattheliabilityofthemembersislimitedbysharesorbyguarantee;or

(c)inthecaseofanunlimitedcompany,thattheliabilityofthemembersisunlimited;and

(d)thatthecompanyisaprivateorpubliccompany,asthecasemaybe.

(6)ThecertificateofincorporationshallbeprimafacieevidencethatalltherequirementsofthisActinrespectofregistrationandofmattersprecedentandincidentaltoithavebeencompliedwithandthattheAssociationisacompanyauthorisedtoberegisteredanddulyregisteredunderthisAct.

37.Effectofregistration

Asfromthedateofincorporationmentionedinthecertificateofincorporation,thesubscriberofthememorandumtogetherwithsuchotherpersonsasmay,fromtimetotime,becomemembersofthecompany,shallbeabodycorporatebythenamecontainedinthememorandum,capableforthwithofexercisingallthepowersandfunctionsofanincorporatedcompanyincludingthepowertoholdland,andhavingperpetualsuccessionandacommonseal,butwithsuchliabilityonthepartofthememberstocontributetotheassetsofthecompanyintheeventofitsbeingwoundupasismentionedinthisAct.

Capacityandpowersofcompanies

38.Powersofcompanies

(1)Excepttotheextentthatthecompany'smemorandumoranyenactmentotherwiseprovides,everycompanyshall,forthefurtheranceofitsauthorisedbusinessorobjects,haveallthepowersofanaturalpersonoffullcapacity.

(2)Acompanyshallnothaveorexercisepowereitherdirectlyorindirectlytomakeadonationorgiftofanyofitspropertyorfundstoapoliticalpartyorpoliticalassociation,orforanypoliticalpurpose;andifanycompany,inbreachofthissubsectionmakesanydonationorgiftofitspropertytoapoliticalpartyorpoliticalassociation,orforanypoliticalpurpose,theofficersindefaultandanymemberwhovotedforthebreachshallbejointlyandseverallyliabletorefundtothecompanythesumorvalueofthedonationorgiftandinaddition,thecompanyandeverysuchofficerormembershallbeguiltyofanoffenceandliabletoafineequaltotheamountorvalueofthedonationorgift.

39.Effectofultraviresacts

(1)AcompanyshallnotcarryonanybusinessnotauthorisedbyitsmemorandumandshallnotexceedthepowersconferreduponitbyitsmemorandumorthisAct.

(2)Abreachofsubsection(1)ofthissection,maybeassertedinanyproceedingsundersections300to313ofthisActorundersubsection(4)ofthissection.

(3)Notwithstandingtheprovisionsofsubsection(1)ofthissection,noactofacompanyandnoconveyanceortransferofpropertytoorbyacompanyshallbeinvalidbyreasonofthefactthatsuchact,conveyanceortransferwasnotdoneormadeforthefurtheranceofanyoftheauthorisedbusinessofthecompanyorthatthecompanywasotherwiseexceedingitsobjectsorpowers.

(4)Ontheapplicationof

(a)anymemberofthecompany;or

(b)theholderofanydebenturesecuredbyafloatingchargeoveralloranyofthecompany'spropertyorbythetrusteeoftheholdersofanysuchdebentures,

thecourtmayprohibit,byinjunction,thedoingofanyactortheconveyanceortransferofanypropertyinbreachofsubsection(1)ofthissection.

(5)Ifthetransactionssoughttobeprohibitedinanyproceedingundersubsection(4)ofthissectionarebeing,oraretobeperformedormadepursuanttoanycontracttowhichthecompanyisaparty,thecourtmay,ifitdeemsthesametobeequitableandifallthepartiestothecontractarepartiestotheproceedings,setasideandprohibittheperformanceofsuchcontract,andmayallowtothecompanyortotheotherpartiestothecontractcompensationforanylossordamagesustainedbythembyreasonofthesettingasideorprohibitionoftheperformanceofsuchcontractbutnocompensationshallbeallowedforlossofanticipatedprofitstobederivedfromtheperformanceofsuchcontract.

40.Effectofrelianceonrestrictionsinthememorandum

(1)Wherethereisprovisioninthememorandumofassociationofacompanyrestrictingthepowersandcapacityofthecompanytocarryonitsauthorisedbusinessorobject,therestrictionmaybereliedonandhaveeffectonlyforthepurposeof

(a)proceedingsagainstthecompanybyadirectorormemberofthecompany,orwherethecompanyhasissueddebenturessecuredbyafloatingchargeoveralloranyofthecompany'sproperty,bytheholderofanyofthedebenturesorthetrusteefortheholdersofthedebentures;or

(b)proceedingsbythecompanyoramemberofthecompanyagainstthepresentorformerofficersofthecompanyforfailuretoobserveanysuchrestriction;or

(c)proceedingsbytheCommissionoramemberofthecompanytowindupthecompany;or

(d)proceedingsforthepurposeofrestrainingthecompanyorotherpersonfromactinginbreachofthememorandumordirectingthecompanyorsuchpersontocomplywiththesame.

(2)Apersonmaynotinproceedingsreferredtoinsubsection(1)(a),(b)or(c),ofthissection,relyonarestrictionofthepowerorcapacityofthecompanycontainedinthememoranduminanycasewherehevotedinfavourof,orotherwiseexpresslyorbyconductagreedtothedoingofanactbythecompanyortheconveyancebyortothecompanyofpropertywhich,itisallegedintheproceedings,wasorwouldbecontrarytosucharestriction.

Effectofmemorandumandarticles

41.Effectofmemorandumandarticles

(1)SubjecttotheprovisionsofthisAct,thememorandumandarticles,whenregistered,shallhavetheeffectofacontractundersealbetweenthecompanyanditsmembersandofficersandbetweenthemembersandofficersthemselveswherebytheyagreetoobserveandperformtheprovisionsofthememorandumandarticles,asalteredfromtimetotimeinsofarastheyrelatetothecompany,members,orofficersassuch.

(2)Allmoneypayablebyanymembertothecompanyunderthememorandumorarticlesshallbeadebtduefromhimtothecompanyandshallbeofthenatureofaspecialitydebt.

(3)Wherethememorandumorarticlesempoweranypersontoappointorremoveanydirectororotherofficerofthecompany,suchpowershallbeenforceablebythatpersonnotwithstandingthatheisnotamemberorofficerofthecompany.

(4)Inanyactionbyanymemberorofficertoenforceanyobligationowedunderthememorandumorarticlestohimandanyothermemberorofficer,suchmemberorofficermay,ifanyothermemberorofficerisaffectedbytheallegedbreachofsuchobligation,withhisconsent,sueinarepresentativecapacityonbehalfofhimselfandallothermembersorofficerswhomaybeaffectedotherthananywhoaredefendantsandtheprovisionsofPartXIofthisActshallapply.

Member'srighttocopyofmemorandumandarticles

42.Member'srighttocopiesofmemorandum,etc.

(1)Acompanyshall,onbeingsorequiredbyanymember,sendtohimacopyofthememorandumandofthearticles,ifany,andacopyofanyenactmentwhichaltersthememorandum,subjecttopayment,inthecaseofacopyofthememorandumandofthearticles,ofN20orsuchlesssumasthecompanymayprescribeandinthe

caseofacopyofanenactmentofsuchsumnotexceedingthepublishedpricethereofasthecompanymayrequire.

(2)Ifacompanymakesdefaultincomplyingwiththissection,thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliableforeachoffencetoafinenotexceedingN25.

43.Copiesofmemorandumissuedtoembodyalterations

(1)Whereanalterationismadeinthememorandumofacompanyeverycopyofthememorandumissuedafterthedateofthealterationshallbeinaccordancewiththealteration.

(2)If,whereanysuchalterationhasbeenmade,thecompanyatanytimeafterthedateofthealterationissuesanycopiesofthememorandumwhicharenotinaccordancewiththealteration,itshallbeliabletoafinenotexceedingN25foreachcopysoissued,andeveryofficerofthecompanywhoisindefaultshallbeliabletothelikepenalty.

Alterationofmemorandumandarticles

44.Restrictiononalterationofmemorandum

(1)AcompanymaynotaltertheconditionscontainedinitsmemorandumexceptinthecasesandinthemannerandtotheextentforwhichexpressprovisionismadeinthisAct.

(2)Onlythoseprovisionswhicharerequiredbysection27ofthisActorbyanyotherspecificprovisioncontainedinthisAct,tobestatedinthememorandumofthecompanyconcerned,shallbedeemedtobeconditionscontainedinitsmemorandum.

45.Alterationofmemorandum

(1)ThenameofthecompanyshallnotbealteredexceptwiththeconsentoftheCommissioninaccordancewithsection31ofthisAct.

(2)Thebusinesswhichthecompanyisauthorisedtocarryonor,ifthecompanyisnotformedforthepurposeofcarryingonbusiness,theobjectsforwhichitisestablished,maybealteredoraddedtoinaccordancewiththeprovisionsofsection46orofPartXVofthisAct.

(3)Anyrestrictiononthepowersofthecompanymaybealteredinthesamewayasthebusinessorobjectofthecompany.

(4)Thesharecapitalofthecompanymaybealteredinaccordancewiththeprovisionsofsections100to111ofthisAct,butnototherwise.

(5)Subjecttosection49ofthisAct,anyotherprovisionofthememorandummaybealteredinaccordancewithsection46ofthisAct,orasotherwiseprovidedinthisAct.

46.Modeofalterationofbusinessorobjects

(1)Acompanymay,atameetingofwhichnoticeinwritinghasbeendulygiventoallmembers(whetherornototherwiseentitledthereto),byspecialresolutionaltertheprovisionsofitsmemorandumwithrespecttothebusinessorobjectsofthecompany:

Providedthatifanapplicationismadetothecourtinaccordancewiththissectionforthealterationtobecancelled,itshallnothaveeffectexceptinsofarasitisconfirmedbythecourt.

(2)Anapplicationunderthissectionmaybemadetothecourt

(a)bytheholdersofnotlessintheaggregatethan15percentinnominalvalueofthecompany'sissuedsharecapitaloranyclassthereofor,ifthecompanyisnotlimitedbyshares,notlessthan15percentofthecompany'smembers;or

(b)bytheholdersofnotlessthan15percentofthecompany'sdebenturesentitlingtheholderstoobjecttoalterationsofitsobjects:

Providedthatanysuchapplicationshallnotbemadebyanypersonwhohasconsentedtoorvotedinfavourofthealteration.

(3)Anapplicationunderthissectionshallbemadenotlaterthan28daysafterthedateonwhichtheresolutionalteringthecompany'sbusinessorobjectswaspassed,andmaybemadeonbehalfofthepersonsentitledtomaketheapplicationbysuchoneormoreoftheirnumberastheymayappointinwritingforthepurpose.

(4)Onanapplicationunderthissection,thecourtmaymakeanorderconfirmingthealterationeitherwhollyorinpartandonsuchtermsandconditionsasitthinksfit,andmayadjourntheproceedingsinorderthatanarrangementmaybemadetothesatisfactionofthecourtforthepurchaseoftheinterestofdissentingmembers,andthecourtmaygivesuchdirectionsandmakesuchordersasitthinksexpedientforfacilitatingorcarryingintoeffectanysucharrangement:

Providedthatnopartofthecapitalofthecompanyshallbeexpendedinanypurchase.

(5)Thedebenturesentitlingtheholderstoobjecttoalterationsofacompany'sbusinessorobjectsshallbeanydebenturessecuredbyafloatingcharge.

(6)Thespecialresolutionalteringacompany'sbusinessorobjectsshallrequirethesamenoticetotheholdersofanysuchdebenturesastomembersofthecompany;andindefaultofanyprovisionsregulatingthegivingofnoticetoanysuchdebentureholders,theprovisionsofthecompany'sarticlesregulatingthegivingofnoticetomembersshallapply.

(7)Whereacompanypassesaresolutionalteringitsbusinessorobjectsand

(a)applicationisthereaftermadetothecourtforitsconfirmationunderthissection,thecompanyshallforthwithgivenoticetotheCommissionofthemakingoftheapplication,andthereafterthereshallbedeliveredtotheCommissionwithin15daysfromthedateofitsmaking

(i)acertifiedtruecopyoftheorderinthecaseofrefusaltoconfirmtheresolution;and

(ii)acertifiedtruecopyoftheorderinthecaseofconfirmationoftheresolutiontogetherwithaprintedcopyofthememorandumastherebyaltered;

(b)noapplicationismadewithrespecttheretotoacourtunderthissection,thecompanyshallwithin15daysfromtheendoftheperiodformakingsuchanapplicationdelivertotheCommissionacopyoftheresolutionaspassed.

(8)IftheCommission

(a)issatisfied,aprintedcopyofthememorandumasalteredbytheresolutionshallforthwiththereafterbedeliveredtoit;

(b)isnotsatisfied,itshallgivenoticeinwritingtothecompanyofitsdecisionandanappealfromitsdecisionshallthereafterlietothecourtatthesuitofanypersonaggrieved,ifmadewithin21daysfromthedateofthereceiptbythecompanyofthenoticeoftherejection,orwithinsuchextendedtimeasthecourtmayallow.

(9)ThecourtmayatanytimeextendthetimeforthedeliveryofdocumentstotheCommissionunderparagraph(a)ofsubsection(7)ofthissectionforsuchperiodasthecourtmaythinkproper.

(10)IfacompanymakesdefaultingivingnoticeordeliveringanydocumenttotheCommissionasrequiredbysubsection(6)ofthissection,thecompanyandeveryofficerofthecompanywhoisindefaultshallbeliabletoafineofN50.

(11)Thevalidityofanalterationoftheprovisionofacompany'smemorandumwithrespecttothebusinessorobjectsofthecompanyshallnotbequestionedonthegroundthatitwasnotauthorisedbysubsection(1)ofthissectionexceptinproceedingstakenforthepurpose(whetherunderthissectionorotherwise)beforetheexpirationof21daysafterthedateoftheresolutioninthatbehalf;andwhereanysuchproceedingsaretakenotherwisethanunderthissection,subsections(6),(7),(8)and(9)ofthissectionshallapplyinrelationtheretoasiftheyhadbeentakenunderthissection,andasifanyorderdeclaringthealterationinvalidwereanordercancellingitandasifanyorderdismissingtheproceedingswereanorderconfirmingthealteration.

(12)Inthissection"member"includesanypersonfinanciallyinterestedinthecompany.

47.Powertoalterprovisionsinthememorandumincertaincases

(1)Subjecttotheprovisionsofsection44ofthisActandofthissectionandofanypartofPartAofthisAct(whichpreservestherightsofminoritiesincertaincases)anyprovisioninacompany'smemorandum,whichmightlawfullyhavebeeninarticlesofassociationinsteadofinthememorandum,maybealteredbythecompanybyspecialresolution;butifanapplicationismadetothecourtforthealterationtobecancelled,thealterationshallnothaveeffectexceptinsofarasitisconfirmedbythecourt.

(2)Thissectionshallnotapplywherethememorandumitselfprovidesfororprohibitsthealterationofalloranyofthesaidprovisions,andshallnotauthoriseanyvariationorabrogationofthespecialrightsofanyclassofmembers.

(3)Subsections(2),(3),(4),(7),(8)and(9)ofsection46ofthisAct(whichrelatetomodeofalterationofbusinessorobjects)exceptparagraph(b)ofsubsection(2)thereof,shallapplyinrelationtoanyalterationandtoanyapplicationmadeunderthissectionastheyapplyinrelationtoalterationsandtoapplicationsmadeunderthatsection.

(4)Thissectionshallapplytoacompany'smemorandum,whetherregisteredbeforeorafterthecommencementofthisAct.

48.Alterationofarticles

(1)SubjecttotheprovisionsofthisActandtotheconditionsorotherprovisionscontainedinitsmemorandum,acompanymaybyspecialresolutionalteroraddtoitsarticles.

(2)Anyalterationoradditionsomadeinthearticlesshall,subjecttotheprovisionsofthisAct,beasvalidasiforiginallycontainedthereinandbesubject,inlikemanner,toalterationbyspecialresolution.

49.Limitationofliabilitytocontributetosharecapitalifmemorandum,etc.,altered

Savetotheextenttowhichamemberofacompanyagreesinwritingatanytimetobeboundthereby,andanythingtothecontraryinthememorandumorarticlesnotwithstanding,themembershallnotbeboundbyanyalterationmadeinthememorandumorarticlesofthecompanyrequiringhimonorafterthedateofthealterationto

(a)takeorsubscribeformoresharesthanheheldatthedateonwhichhebecameamember;or

(b)increasehisliabilitytocontributetothesharecapitalofthecompany;or

(c)paymoneybyanyothermeanstothecompany.

CHAPTER2

Conversionandreregistrationofcompanies

50.Reregistrationofprivatecompanyaspublic

(1)Subjecttothissection,aprivatecompanyhavingasharecapitalmaybereregisteredasapubliccompanyif

(a)aspecialresolutionthatitshouldbesoreregisteredispassed;and

(b)anapplicationforreregistrationisdeliveredtotheCommissiontogetherwiththedocumentsprescribedinsubsection(3)ofthissection.

(2)Thespecialresolutionshall

(a)alterthecompany'smemorandumsothatitstatesthatthecompanyistobeapubliccompany;and

(b)makesuchotheralterationsinthememorandumasarenecessarytobringitintoconformitywiththerequirementsofthisActwithrespecttothememorandumofapubliccompanyinaccordancewithsection27ofthisAct;and

(c)makesuchalterationsinthecompany'sarticlesasarerequisiteinthecircumstances.

(3)TheapplicationshallbemadetotheCommissionintheprescribedformandbesignedbyatleastonedirectorandthesecretaryofthecompany;andthedocumentstobedeliveredwithitarethefollowing

(a)aprintedcopyofthememorandumandarticlesasalteredinpursuanceoftheresolution;and

(b)acopyofawrittenstatementbythedirectorsandthesecretarycertifiedonoathbythem,andshowingthatthepaidupcapitalofthecompanyasatthedateoftheapplicationisnotlessthan25percentoftheauthorisedsharecapitalasatthatdate;and

(c)acopyofthebalancesheetofthecompanyasatthedateoftheresolutionorthepreceding6months,whicheverislater;and

(d)astatutorydeclarationintheprescribedformbyadirectorandthesecretaryofthecompany

(i)thatthespecialresolutionrequiredunderthissectionhasbeenpassed;and

(ii)thatthecompany'snetassetsarenotlessthantheaggregateofthepaidupsharecapitalandundistributablereserves;and

(e)acopyofanyprospectusorstatementinlieuofprospectusdeliveredwithinthepreceding12monthstotheSecuritiesandExchangeCommissionestablishedundertheInvestmentsandSecuritiesAct.

[Cap.124.]

(4)IftheCommissionissatisfiedthatacompanyhascompliedwiththeprovisionsofthissectionandmaybereregisteredasapubliccompany,itshall

(a)retaintheapplicationandotherdocumentsdeliveredtoitunderthissection;

(b)registertheapplicationandotherdocuments;and

(c)issuetothecompanyacertificateofincorporation,statingthatthecompanyisapubliccompany.

(5)Upontheissuetoacompanyofthecertificateofincorporationunderthissection

(a)thecompanyshallbyvirtueoftheissueofthatcertificatebecomeapubliccompany;and

(b)anyalterationsinthememorandumandarticlessetoutintheresolutionshalltakeeffectaccordingly.

(6)Thecertificateshallbeprimafacieevidencethat

(a)therequirementsofthisActinrespectofreregistrationandofmattersprecedentandincidentaltheretohavebeencompliedwith;and

(b)thecompanyisapubliccompany.

(7)Acompanyshallnotbereregisteredunderthissectionifithaspreviouslybeenreregisteredasanunlimitedcompany.

51.Reregistrationofcompanylimitedbysharesasunlimited

(1)Subjectasfollows,acompanywhichisregisteredaslimitedbysharesmaybereregisteredasunlimitedinpursuanceofanapplicationinthatbehalfcomplyingwiththerequirementsofthissection.

(2)Acompanyshallbeprecludedfromreregisteringunderthissectionifitislimitedbyvirtueofreregistrationundersection52ofthisAct.

(3)Apubliccompanyoracompanywhichhaspreviouslybeenreregisteredasanunlimitedcompanyshallnotberegisteredunderthissection.

(4)Anapplicationunderthissectionshallbeintheprescribedformandsignedbyadirectorandthesecretaryofthecompany,andbelodgedwiththeCommissiontogetherwiththedocumentsspecifiedinsubsection(6)ofthissection.

(5)Theapplicationshallsetoutsuchalterationsinthecompany'smemorandumandarticlesasarerequisitetobringitintoconformitywiththerequirementsofthisActwithrespecttothememorandumandarticlesofacompanytobeformedasanunlimitedcompany.

(6)ThedocumentstobelodgedwiththeCommissionareasfollows

(a)theprescribedformofassenttothecompanybeingregisteredasunlimited,subscribedbyoronbehalfofallthemembersofthecompany;

(b)astatutorydeclarationmadebythedirectorsofthecompany

(i)thatthepersonsbywhomoronwhosebehalftheformofassentissubscribedconstitutethewholemembershipofthecompany;and

(ii)ifanyofthemembershavenotsubscribedthatformthemselves,thatthedirectorshavetakenallreasonablestepstosatisfythemselvesthateachpersonwhosubscribedtoitonbehalfofamemberwaslawfullyempoweredtodoso;and

(c)aprintedcopyofthememorandumandthearticlesincorporatingthealterationssetoutintheapplication.

(7)IftheCommissionissatisfiedthatthecompanyberegisteredunderthissectionasanunlimitedcompany,itshallretaintheapplicationandotherdocumentslodgedwithitunderthissectionand

(a)registertheapplicationandotherdocuments;and

(b)issuetothecompanyacertificateofincorporationappropriatetothestatustobeassumedbyvirtueofthissection.

(8)Ontheissueofthecertificate

(a)thestatusofthecompany,byvirtueoftheissue,shallbechangedfromlimitedtounlimited;and

(b)thealterationsinthememorandumsetoutintheapplicationandanyalterationinthearticlessosetoutshalltakeeffectasifdulymadebyresolutionofthecompany;and

(c)theprovisionsofthisActshallapplyaccordinglytothememorandumandarticlesasaltered.

(9)Thecertificateshallbeprimafacieevidencethattherequirementsofthissectioninrespectofthereregistrationandofmattersprecedentandincidentaltoithavebeencompliedwith,andthatthecompanywasauthorisedtobereregisteredunderthisActinpursuanceofthissectionandwasdulysoreregistered.

52.Reregistrationofunlimitedaslimitedbyshares

(1)Subjectasfollows,acompanywhichisregisteredasunlimitedmaybereregisteredaslimitedbysharesifaspecialresolutionthatitshouldbesoregisteredispassed,andtherequirementsofthissectionarecompliedwithinrespectoftheresolutionandotherwise.

(2)Acompanyshallnotunderthissectionbereregisteredasapubliccompanyorcompanylimitedbyguarantee;andacompanyshallbeprecludedfromregisteringunderitifitisunlimitedbyvirtueofreregistrationundersection51ofthisAct.

(3)ThespecialresolutionshallstatetheproposedauthorisedsharecapitalandprovideforthemakingofsuchalterationsinthememorandumasarenecessarytobringitintoconformitywiththerequirementsofthisActwithrespecttothememorandumofacompanysolimited,andsuchalterationsinthearticlesasarerequisiteinthecircumstances.

(4)AnapplicationintheprescribedformforthecompanytobereregisteredaslimitedsignedbyadirectorandthesecretaryofthecompanyshallbelodgedwiththeCommissiontogetherwiththenecessarydocumentsnotearlierthanthedayonwhichtheresolutionwasfiledundersection237ofthisAct.

(5)ThedocumentstobelodgedwiththeCommissionshallbeaprintedcopyofthe

(a)memorandumasalteredinpursuanceoftheresolution;and

(b)articlesassoaltered.

(6)IftheCommissionissatisfiedthatthecompanybereregisteredunderthissectionasacompanylimitedbyshares,itshallretaintheapplicationandotherdocumentslodgedwithitunderthissectionandregisterthem,anditshallissuetothecompanyacertificateofincorporationappropriatetothestatustobeassumedbythecompanybyvirtueofthissection.

(7)Ontheissueofthecertificate

(a)thestatusofthecompanyshall,byvirtueoftheissue,changefromunlimitedtolimited;and

(b)thealterationsinthememorandumspecifiedintheresolutionandthealterationsin,andadditionsto,thearticlessospecifiedshalltakeeffectaccordingly.

(8)Thecertificateshallbeprimafacieevidencethattherequirementsofthissectioninrespectofreregistrationandofmattersprecedentandincidentaltoithavebeencompliedwith,andthatthecompanywasauthorisedtobereregisteredinpursuanceofthissectionandwasdulysoreregistered.

(9)Thereregistrationofanunlimitedcompanyasalimitedcompanyshallnotaffecttherightsandliabilitiesofthecompanyinrespectofanydebtorobligationincurred,oranycontractenteredinto,by,to,with,oronbehalfofthecompanybeforethereregistration,andthoserightsorliabilitiesmaybeenforcedinthemannerprovidedbyPartIIIofthisActasinthecaseofacompanyregisteredpursuanttoPartIIofthisAct.

53.Reregistrationofpubliccompanyasprivate

(1)Apubliccompanymaybereregisteredasaprivatecompanyif

(a)aspecialresolutioncomplyingwithsubsection(2)ofthissectionthatitshouldbesoreregisteredispassedandhasnotbeencancelledbythecourtunderthissection;

(b)anapplicationforthepurposeintheprescribedformandsignedbyadirectorandthesecretaryofthecompanyisdeliveredtotheCommissiontogetherwithaprintedcopyofthememorandumandarticlesofthecompanyasalteredbytheresolution;and

(c)either

(i)theperiodduringwhichanapplicationforthecancellationoftheresolutionunderthissectionmaybemadehasexpiredwithoutanysuchapplicationhavingbeenmade;or

(ii)wheresuchanapplicationhasbeenmade,theapplicationhasbeenwithdrawnoranorderhasbeenmadeconfirmingtheresolutionandacopyofthatorderhasbeendeliveredtotheCommission.

(2)Thespecialresolutionshallalterthecompany'smemorandumsothatitstatesthatthecompanyisaprivatecompanyandshallmakesuchotheralterationsinthecompany'smemorandumandarticlesasarerequisiteinthecircumstances.

(3)Wherethespecialresolutionispassed,anapplicationmaybemadetothecourtforthecancellationoftheresolution,andsuchapplicationmaybemadeby

(a)theholdersofnotlessintheaggregatethanfivepercentinnominalvalueofthecompany'sissuedsharecapital,oranyclassthereof;or

(b)notlessthanfivepercentofthecompany'smembers;butnotbyapersonwhohasconsentedtoorvotedinfavouroftheresolution.

(4)Theapplicationshallbemadewithin28daysafterthepassingoftheresolutionandtheapplicantshallforthwithgivenoticeoftheapplicationintheprescribedformtotheCommissionandtothecompany.

(5)Onthehearingoftheapplication,thecourtshallmakeanordereithercancellingorconfirmingtheresolutionandmaymakeallsuchordersorgivesuchdirectionsasitmaythinkexpedientunderthecircumstances.

(6)Thecompanyshall,within15daysfromthemakingofthecourt'sorder,orwithinsuchotherperiodasthecourtmaybyorderdirect,delivertotheCommissionacertifiedtruecopyoftheorder.

(7)IfacompanyfailstodelivertotheCommissionacertifiedtruecopyoftheorderasrequiredinsubsection(6)ofthissection,thecompanyandanyofficerofitwhoisindefault,shallbeguiltyofanoffenceandliabletoafineofNI00andforcontinuedcontravention,toadailydefaultfineofN25.

(8)IftheCommissionissatisfiedthatacompanymaybereregisteredunderthissection,itshall

(a)retaintheapplicationandotherdocumentsdeliveredtoitunderthissection;

(b)registertheapplicationandotherdocuments;and

(c)issuethecompanywithacertificateofincorporationasaprivatecompany.

(9)Ontheissueofthecertificate

(a)thecompanyshallbecomeaprivatecompany;and

(b)thealterationinthememorandumandarticlessetoutintheresolutionshalltakeeffectaccordingly.

(10)Thecertificateshallbeprimafacieevidencethat

(a)therequirementsofthissectioninrespectofreregistrationandofmattersprecedentandincidentaltoithavebeencompliedwith;and

(b)thecompanyisaprivatecompany.

CHAPTER3

Foreigncompanies

54.ForeigncompaniesintendingtocarryonbusinessinNigeria

(1)Subjecttosections56to59ofthisAct,everyforeigncompanywhichbeforeorafterthecommencementofthisActwasincorporatedoutsideNigeria,andhavingtheintentionofcarryingonbusinessinNigeria,shalltakeallstepsnecessarytoobtainincorporationasaseparateentityinNigeriaforthatpurpose,butuntilsoincorporated,theforeigncompanyshallnotcarryonbusinessinNigeriaorexerciseanyofthepowersofaregisteredcompanyandshallnothaveaplaceofbusinessoranaddressforserviceofdocumentsorprocessesinNigeriaforanypurposeotherthanthereceiptofnoticesandotherdocuments,asmatterspreliminarytoincorporationunderthisAct.

(2)Anyactofthecompanyincontraventionofsubsection(1)ofthissectionshallbevoid.

(3)Nothinginthissectionshallaf