Overview Of The Legal Framework For Regulatory Bodies On Corporate Law Practice In Nigeria Flashcards
(17 cards)
What is the Companies and Allied Matters Act?
A legal framework for the incorporation of companies, limited liability partnerships, and registration of business names in Nigeria.
Enacted in 2020, replacing the 2004 version.
How many sections are in the Companies and Allied Matters Act, 2020?
870 sections.
This is an increase from 613 sections in the 2004 Act.
What does Part A of the Companies and Allied Matters Act, 2020 cover?
The Corporate Affairs Commission (CAC).
This part outlines the establishment and functions of the CAC.
What is the purpose of the pre-action notice in Section 17 of CAMA 2020?
To serve a written notice of intention to commence a suit against the CAC 30 days prior to filing.
This aims to minimize litigation against the CAC.
What is the maximum number of members allowed in a partnership before it must be registered as a company according to Section 19?
20 members.
Partnerships exceeding this limit must register under the Act or other applicable laws.
What authority does Section 31(5) give the Corporate Affairs Commission regarding name reservations?
To withdraw or cancel approval for name reservation if it was fraudulently procured.
This improves the previous requirement of court intervention.
What is introduced by Section 40(1) of CAMA 2020?
Statement of compliance required for registration.
Previously, a declaration needed to be signed by a legal practitioner.
What is the role of the Corporate Affairs Commission?
To administer the Companies and Allied Matters Act, including registration and regulation of companies.
It also oversees the formation and management of business names and incorporated trustees.
Who is the Chief Executive of the Corporate Affairs Commission?
The Registrar-General.
Must be a qualified legal practitioner with at least 10 years of experience.
What professionals are eligible for accreditation with the CAC?
- Legal Practitioners
- Chartered Accountants
- Chartered Secretaries
These professionals must follow specific procedures to become accredited.
What is the importance of the Administrative Proceedings Committee established by CAMA 2020?
It provides a framework for administrative procedures within the Commission.
This is one of the innovations introduced in CAMA 2020.
What is the location of the headquarters of the Corporate Affairs Commission?
Abuja.
The CAC also has branch offices in each state of Nigeria.
What does the governing board of the Corporate Affairs Commission consist of?
- A chairman appointed by the President
- Representatives from various sectors, including business and legal professions
- The Registrar-General of the Commission
The board guides the Commission’s operations and policies.
What is the penalty for members of a partnership exceeding 20 members according to Section 19?
Liable to a fine prescribed by the Commission for every day of contravention.
This applies if the business continues for more than 14 days after exceeding the limit.
What is the purpose of the National Insurance Commission Act?
To regulate the insurance sector in Nigeria.
It is one of the regulatory laws listed under corporate law practice.
List three regulatory laws governing corporate law practice in Nigeria.
- Companies and Allied Matters Act
- Investments and Securities Act
- Federal Competition and Consumer Protection Act
These laws form the foundation of corporate governance in Nigeria.
What does the Federal Competition and Consumer Protection Act address?
It promotes fair competition and protects consumers in Nigeria.
This law is crucial for maintaining market integrity.
