Introduction The position of Directors as the first and residual employees of companies with responsibility for the day-to-day management demands careful and deliberate consideration in their appointments – so as to not only meet the legal requirements but also provide the requisite managerial pool for companies. The provision of funds either as equity or debt […]

Introduction The decision by persons to contribute their resources for the incorporation and promotion of a common business interest or idea is underpinned by expectations, particularly financial. However, such financial expectations are not without limitations in the case of companies. The distinction between the financial concepts of assets, revenue (sales), profit (loss), and dividend is […]

Introduction Big or small, a private company must have a shareholder(s) and at least two directors who are obligated to perform some duties in compliance with the law. They are expected to work in harmony towards the sustained long-term interest and growth of a company. Consequently, the performance of their duties may result in the […]

Introduction Uncertainty remains about the timeline for a global economic recovery following the Covid-19 pandemic. Companies continue to fashion out ways to deal with its negative impacts on their operations, sales/revenue, costs, and profits. This is having mixed impacts on companies following unplanned emergency investments into their operations, new technologies, diversification of business formats among […]

Introduction “The 100 Club” – a content initiative of Cable News Network (CNN) takes a look at global and iconic brands that have survived and thrived for more than 100 years in business. So far, the production has covered some companies/brands that have survived the 100-year mark since their formation (incorporation) – Guinness, Coca-Cola, Gillette, […]

INTRODUCTION “Walmart leaps into TikTok acquisition fray, joining Microsoft’s bid” was The Washington Post’s 27th August 2020 online headline on news of the expression of interest by Walmart in TikTok. TikTok, the new sensational Chinese video-sharing social media application has been threatened with the United States (US) ban over security concerns following its current ownership, […]

Introduction Directors once duly appointed in compliance with the requirements or by operation of law, become “officers” clothed with powers to act on behalf of a company and to perform duties as may be permitted (or restricted) by the Companies Act, 2019 (Act 992) and/or by the Constitution of the Company – and may become […]

INTRODUCTION In June, it is estimated that three hundred thousand (300,000) companies and businesses risk deletion from the company/business registers. A B&FT news report of 19th March 2021 quoted the Registrar-General, Mrs. Jemima M. Oware as issuing a final public notice – “kindly note that if at the expiration of three months from the date […]

INTRODUCTION A company limited by shares construct produces an entity bestowed with legal personality, limited liability, transferability of shares, delegated management and investor ownership according to Reinier Kraakman. Globally, these distinct features backed by legislation and practice have become common features of such companies – and similarly, the Companies Act, 2019 (Act 992) recognises these […]

INTRODUCTION A company is a creation of a statute implying that its form, operation, and continued existence are prescriptions of law. All aspects of company formation and management are also regulated by law. However, the primary company law regulation – the Companies Act, 2019 (Act 992) has not definitively provided for how and in whose […]