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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
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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
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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.
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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.
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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.
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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
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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.
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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.
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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
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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.
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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.
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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
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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(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,
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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.
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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.
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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
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(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
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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:
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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.
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(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.
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(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
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(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.
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(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.
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(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
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(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
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(b)thecompanyisaprivatecompany.
CHAPTER3
Foreigncompanies
54.ForeigncompaniesintendingtocarryonbusinessinNigeria
(1)Subjecttosections56to59ofthisAct,everyforeigncompanywhichbeforeorafterthecommencementofthisActwasincorporatedoutsideNigeria,andhavingtheintentionofcarryingonbusinessinNigeria,shalltakeallstepsnecessarytoobtainincorporationasaseparateentityinNigeriaforthatpurpose,butuntilsoincorporated,theforeigncompanyshallnotcarryonbusinessinNigeriaorexerciseanyofthepowersofaregisteredcompanyandshallnothaveaplaceofbusinessoranaddressforserviceofdocumentsorprocessesinNigeriaforanypurposeotherthanthereceiptofnoticesandotherdocuments,asmatterspreliminarytoincorporationunderthisAct.
(2)Anyactofthecompanyincontraventionofsubsection(1)ofthissectionshallbevoid.
(3)Nothinginthissectionshallaf