By Ayodeji Sunday Ibikunle

The Companies and Allied Matter Act 2020 has completely revolutionized corporate law in Nigeria by introducing several new concepts that did weren’t in the previously now repealed 1990 CAMA. By virtue of the new company legislation which was passed into law on the 7th of August, 2020 an individual can now own a company in Nigeria.

See Section 18 of the Companies and Allied Matter Act 2020 as opposed to the principle of at least two persons to own a company as was the case in the now repealed 1990 CAMA

This phenomenon is not new to the world as before now, several other countries like Singapore, Australia, India, United Kingdom, United State of America and China had already recognized the ability of an individual to form a company before the enactment of the new Companies act.

The new federal law, has repealed the age long companies and allied matter Act, 1990, that came into being on 2nd January, 1990. Thus, this is the most significant business legislation in three decades and it introduces new provisions that promote ease of doing business and reduce regulatory hurdles.

Companies are the most widely used business organization. They are profit-oriented. Under 1990 CAMA it takes at least two persons to incorporate or form a company but now an individual can start, promote, register and own a private company, by being the sole shareholder and director of his/her private company.

It is imperative to know that this has dealt with dual of owners of a company, the now repealed Act now requires just one person to own a company just like a business name. Such companies are generally created when there is only one founder/promoter for the business.

In the circumstance, we see the need for the beauty in this change as in the new CAMA provides for remote or virtual general meetings. This is especially relevant today given the disruptions caused by the COVID-19 pandemic to operations around the world. It provides that meetings can be done online or virtual means, provided that such meetings are conducted in accordance with the Articles of Association of the company.

Its worthy to note that anyone can set up a company now in Nigeria as long as they are 18 years old and above and not an undischarged bankrupt or a disqualified director.

In conclusion, the age-long thirty (30) years reign of the 1990 CAMA has been laid to rest as the new CAMA has made ease of doing business at your convenience. A single member can now own a company without too much formalities.

AYODEJI SUNDAY IBIKUNLE Esq DL, LL. B, BL

Associate at Alhaji Ahmed Raji Senior Advocate of Nigeria