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By the provision of the Companies and Allied Matters Act (CAMA) 2020, a single person can be the sole shareholder, director, and promoter of a company in Nigeria. Section 18(2) of CAMA provides thus; “one person may form or incorporate a private company.
Prior to the enactment of the CAMA 2020, only a minimum of two persons are permitted to form or incorporate a company in Nigeria.
It is important to note that this new provision only applies to the formation and incorporation of a private company limited by shares.
It is also worth noting that single-shareholder firms are not obligated to hold mandated annual general meetings.
The Companies and Allied Matters Act also permit companies to have a single director on the condition that their annual turnover and net asset value do not exceed NGN120 million and NGN60 million. Single-director firms are not permitted for foreign-owned businesses.
We believe that this provision is a welcome game changer in the bid to enhance and reduce the difficulties associated with forming a company in Nigeria.
Written by Olawunmi Ojo for The Trusted Advisors
Email us: info@trustedadvisorslaw.com