The Role of Promoters in Forming a Company in Nigeria

Ahmad Barba Basakkwace, Zainab Umar Dange, Naryam Baba Waziri

Abstract


In Nigeria, the law that governed the establishment of the company is the companies and allied matters Act 1990 (as amended) and the body that is empowered to register the company is the Cooperate Affairs Commission. Those that are empowered to form a company are promoters. In Nigeria, the promoters can either be an accountant or any person that has an interest in business. The promoters are the major actors in the company formation. They consider so many things and take necessary steps before incorporating a company. As a result, this paper examines the role played by a promoter in forming a company. It also examines the legal position of a promoter with a view to understand the legality of his action in the formation of a company. Pre-incorporation contract is also looked into to see how it affect the promoters because they are not the agent of an unregistered company as such their contract is based on pass consideration that was why the paper recommended the inclusion of the promoter’s entitlement in the article of the company

Keywords


promoters, formation, role, company

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References


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