CHAPTER ONE

INTRODUCTION

1.1       MEANING, NATURE AND SCOPE OF A COMPANY

A general review of the relevant texts on company law and practice in Nigeria, and indeed within the commonwealth, will reveal that many authors have hold different opinions as to the meaning of the term “Company”. This is because, just as we have many authors on company law and practice around the globe, so also exist different conceptions as to the meaning of a company. Added to this is the fact that certain problems are usually associated with arriving at a universally acceptable definition of some legal terms. It has been observed that the word “Company”, has a variable disposition[1].

L.C.B. Gower[2] opined that a company is an association of number of people for some common object or objects purely for economic reason(s).

A company has also been viewed as an intangible business entity or association formed by people or groups for the purpose of carrying out defined and common objectives or objectives usually for gain[3].

Similarly, Oshorn’s Law Dictionary defines a company as incorporated body with separated legal personality.

It is an association of persons formed for the purpose of some business or undertaking, carried on in company’s name.[4]

The foregoing therefore explains why section 18 of the Company and Allied Matters Act (CAMA) 1990 provides thus:- “As from the commencement of the Act, any two or more persons may form and incorporate a company by complying with the requirements of the Act in respect of registration of such company” .

The intendment of this provision is that a company may be regarded as a legal framework whereby at least two persons agree to carryon business whether equally or otherwise with predetermined object (economic gain or charitable reason) be it they practice directly or otherwise in running of the business provided they complied with the provisions of the enabling legislation.[5] for the incorporation of the companies thereby attaining a distinct legal personality which is autonomous of its shareholders or its subscribers.

1. 1. This material content is developed to serve as a GUIDE for students to conduct academic research work
2. 2. As a source for additional understanding of the subject.
3. 3. As a source for ideas for your own research work (if properly referenced).
4. 4. For PROPER paraphrasing (see your university definition of plagiarism and acceptable paraphrase)
5. 5. Direct citing (if referenced properly)
Thank you so much for your respect to the authors copyright.