Pleased to receive the news of this decision of the Federal High Court affirming a position argued in an article I wrote and published 2years ago, available here: https://lnkd.in/d6Nnjdyj The CAMA's framework for single-member private companies (SMPCs) leaves much to be desired. For instance, it is silent on the attainment of SMPC status by operation of law such as where the number of members falls below two. The article examined this issue as one of the design flaws in the CAMA's framework for SMPCs. Interestingly, one of the hypothetical scenarios used in the article to discuss the issue is strikingly similar to the fact-pattern in this decision of the Federal High Court, including the prediction that the CAC would pursue winding-up if the issue arose! This decision is therefore useful and timely as it clarifies the law on this interesting issue. Kudos to Kigai Zontong, MCIArb. and his B&I team for the industry put into this!
Happy to have been instrumental to this milestone decision of the Federal High Court which gives effect to provision of section 18(2) of CAMA 2020 in permitting the formation of single-member private companies in Nigeria. Indeed, it is inconceivable that section 18(2) of CAMA 2020 creates a dichotomy between private companies created under CAMA 1990 from those created under CAMA 2020; nor is there any bar to private companies registered with more than one shareholders restructuring into a single shareholder entity. It is gratifying to see the court accept this position in the most elaborate and illuminating manner. #B&I 💪🏽💪🏽
Kudos bro.
Emmanuel Akhigbe
5mo
Really salutary. This is what we expect from our Courts and not otherwise.
Commercial Dispute Resolution
5moThanks a lot, Kenneth. I also enjoyed reading your article. Like a prophet, you foresaw the challenges that eventually emerged with the provision of section 18(2) CAMA 2020 and that may emerge with respect to other provisions in relation to SMPCs. Unless they are dealt with by an amendment, it will be interesting to see how the courts deal with the issues as they arise.