On Monday July 4, 2016, the Central Bank of Nigeria (CBN) released a Press Statement on Skye Bank to inform the public of its decision to effect key changes on the board and management of Skye Bank Plc because the bank had fallen short of minimum thresholds in critical prudential and adequacy ratios. The statement further … More Regulatory intervention in Skye Bank Plc: outcome of failure in Corporate Governance
Introduction There are certain business structures that could be created to foster easier operations and management, or to accomplish some other agreed specific purpose. Businesses can be structured in the form of a group, holding or consortium to achieve the aforementioned goals. It is imperative to note here that a single company cannot be structured … More The formation of Group Company, Holding Company and Consortium in Nigeria
Introduction The term ‘Non-Profit Organisation’ could be misleading because it suggests that entities in this category do not make a profit, which is not the case. Non-profit organisations are essentially organisations that are prohibited from distributing profits to their members or officers. They could be incorporated; in which case the governing corporate law provides for … More Tax exemption for Non-profit organisations is not absolute
Many entrepreneurs find themselves in a fix when it comes to registration of their businesses because they are not sure which mode of registration would work best for them. For profit making ventures, there are two main avenues of registration available at the Corporate Affairs Commission: company and business name.
Recently, the Corporate Affairs Commission (CAC) indicated that it had resumed the exercise of striking out dormant companies from its register. About 45,000 companies considered dormant by the Commission stand the risk of being de-registered. Thousands of companies and other forms of corporate bodies get registered at the CAC on a daily basis. In many … More What the failure to file annual returns could cost your company in Nigeria
Introduction Profit making ventures are usually registered as companies limited by shares or unlimited companies. A company is limited by shares when the liability of shareholders of the company is limited to the amount, if any, unpaid on the shares held by them. In the case of unlimited companies, the liability of the shareholders is … More Fundamentals of shares and share capital
The problem In an earlier blog post, I wrote about the alarming value of unclaimed dividends in the country which was put at an estimated N60 billion naira (about US$360 million). (Please see Much ado about unclaimed dividends) The Securities & Exchange Commission (SEC) has been in search for effective ways to reduce the value … More A cutting-edge solution to the problem of unclaimed dividends in Nigeria
Background The subject of corporate governance in Nigeria received greater attention after the global financial crisis in 2008-2009. Corporate failures, particularly in the banking industry during the period revealed huge lapses in corporate governance in the affected organisations. Since then, there have been assiduous attempts to enhance corporate governance structures and practices in the country. … More The future of corporate governance in Nigeria: an evolution from principles based to rules based approach.
Introduction The minority shareholder is one without controlling interest in a company. A direct consequence of the majority rule in corporate administration is the fact that the minority shareholders are at risk of exploitation by the majority. Thus, there is need to protect this group of shareholders in order that their interest in the corporation … More How to enhance minority shareholder protection in Nigeria
Introduction Recently, the Securities and Exchange Commission (SEC) put the figure of unclaimed dividends in the country at an alarming N60bn[i]. The news has since generated considerable reaction from stakeholders including regulatory authorities and shareholders’ associations. Various reasons have been adduced for the steady increase of unclaimed dividends in the country.