CAMA 2020 IN REVIEW

CAMA 2020 IN BRIEF
CAMA 2020 IN BRIEF

 

TYPES OF COMPANIES

  1. 21 CAMA 2020 PROVIDES FOR THE FOLLOWING TYPES OF COMPANIES:
  2. Company Limited by shares
  3. Company Limited by guaranty or
  4. Unlimited company

The first category can be registered either as a private company limited by shares or as a public company limited by shares IN ACCORDANCE WITH THEIR RESPECTIVE MEMORANDUM AND ARTICLES OF ASSOCIATION.{S. 28 (c)}

Note that “LTD” is the legally recognized and valid abbreviation for the word “Limited” under the Act for companies limited by shares. {S.29(5)} of the Act.  Therefore, the practice of using “LLC” albeit in informal sense, appears to be alien to the Act

“PLC” is the recognized abbreviation for the “Public Limited Company while

LTD/GTE is the valid abbreviation for the company limited by guarantee under the Act.

“ULTD” has the validity of the Act as an abbreviation for the unlimited company (see Generally, SS 21, 22, 24, 27, 28 & 29 of the Act

The Act makes provision for Limited Liability Partnership and the acronym here is “LLP” see (S. 757) of the Act

For the purpose of the Act under review, the phrase: “authorized share capital” in the old Act has been replaced with the phrase “MINIMUM ISSUED SHARE CAPITAL” which is N100,000 for private company and N2,000,000 for Public Company respectively.

To be continued……….

 

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