Paper 7

COMPANY LAW

This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to apply and comply with the provisions of Company Law in relevant circumstances and environments and further to demonstrate knowledge of the law and regulations governing corporate entities and ensure compliance in practice.

On completion, a candidate should be able to

Apply legal principles relating to formation of companies
Evaluate the rights and obligations of members and shareholders
Comply with the legal principles governing liquidation of corporates
Comply with the legal principles governing restructuring of companies
Comply with the legal principles relating to companies incorporated outside the country
Comply with the legal requirements relating to the financing of companies.

Content

1
Nature and classification of companies
1. 1.1
  Nature and characteristics of a company
2. 1.2
  Types of companies
3. 1.3
  Principle of legal personality and veil of incorporation
4. 1.4
  Distinction between companies and other forms of business associations sole proprietorships, partnerships and cooperative societies.
2
Formation of companies
1. 2.1
  Promoters and pre-incorporation contracts and deeds.
2. 2.2
  Process and drafting documents required to form a company.
3. 2.3
  Rules relating to company names
4. 2.4
  Memorandum and articles of association
5. 2.5
  Certificate of incorporation
6. 2.6
  Effects of incorporation
7. 2.7
  Execution of a company’s documents
8. 2.8
  Alteration of status of companies
3
Membership of a company
1. 3.1
  Acquisition of membership
2. 3.2
  Register of members
3. 3.3
  Rights and liabilities of members
4. 3.4
  Cessation of membership
5. 3.5
  Register of a company’s beneficial owners
6. 3.6
  Derivative actions.
4
Shares
1. 4.1
  Classes of shares
2. 4.2
  Variation of class rights
3. 4.3
  Share certificates
4. 4.4
  Issue and allotment
5. 4.5
  Transfer and transmission
6. 4.6
  Transfer of shares under central depository system
7. 4.7
  Mortgaging and charging of shares
5
Share capital
1. 5.1
  Meaning and types of share capital
2. 5.2
  Raising of share capital
3. 5.3
  Prospectus/information memorandum
4. 5.4
  Maintenance of capital
5. 5.5
  Alteration and Consolidation of share capital
6. 5.6
  Dividends
6
Debt capital
1. 6.1
  Borrowing powers of a company
2. 6.2
  Company assets that can secure a company’s borrowings
3. 6.3
  Company debentures
4. 6.4
  Company charges
5. 6.5
  Meetings and resolutions in respect of debt capital
6. 6.6
  Registration of charges
7. 6.7
  Remedies for debenture holders
7
Company meetings
1. 7.1
  Nature and classification of company meetings
2. 7.2
  Types of company meetings held to execute various functions of company meetings
3. 7.3
  Methods of holding company meetings
4. 7.4
  Essentials of a valid physical, virtual and hybrid meeting Voting
5. 7.5
  Resolutions
6. 7.6
  Drafting resolutions
7. 7.7
  Protection of minority shareholders
8
Company Directors
1. 8.1
  Qualifications, appointment and disqualification
2. 8.2
  Powers and duties of directors
3. 8.3
  Removal and vacation of office
4. 8.4
  Register of directors
5. 8.5
  Remuneration of directors
6. 8.6
  Loans to directors
7. 8.7
  Compensation for loss of office
8. 8.8
  Disclosure of director’s interest in contracts
9. 8.9
  The rule in Turquand’s case/Indoor Management rule
10. 8.10
  Insider dealing
9
The Company Secretary
1. 9.1
  Qualification, appointment and removal
2. 9.2
  Powers and duties of the Company Secretary
3. 9.3
  Liability of the Company Secretary
4. 9.4
  Register of Secretaries
10
Auditors
1. 10.1
  Qualification, appointment and removal
2. 10.2
  Remuneration of auditors
3. 10.3
  Powers and duties
4. 10.4
  Rights and liabilities
11
Company accounts
1. 11.1
  Books of accounts
2. 11.2
  Form and content of accounts
3. 11.3
  Group accounts
4. 11.4
  Director’s report
12
Audit of Company Accounts
1. 12.1
  Auditor’s report
2. 12.2
  Annual returns
13
Company Investigation
1. 13.1
  Investigation of company affairs
2. 13.2
  Appointment and powers of inspectors
3. 13.3
  Inspector’s report
14
Corporate restructuring
1. 14.1
  Need for restructuring
2. 14.2
  Mergers
3. 14.3
  Post - merger reorganisation of a company’s share capital
4. 14.4
  Takeovers and acquisitions
5. 14.5
  Mergers and divisions of public companies
6. 14.6
  Compromises, arrangements, reconstructions and amalgamations
15
Receivership, Administration, Liquidation and Dissolution of companies
1. 15.1
  Meaning of receivership, administration and dissolution
2. 15.2
  Appointment and vacation of office by the Official Receiver
3. 15.3
  Powers and duties of a receiver
4. 15.4
  Termination of receivership
5. 15.5
  Appointment of an administrator
6. 15.6
  Functions and powers of an administrator
7. 15.7
  Process of administration
8. 15.8
  Termination of appointment and replacement of administrators
9. 15.9
  Company voluntary arrangements
10. 15.10
  Meaning of liquidation
11. 15.11
  Types of liquidation
12. 15.12
  Appointment, powers and duties of liquidators
13. 15.13
  Discharge of liquidators
14. 15.14
  Distribution of assets and dissolution of companies
16
Foreign Companies
1. 16.1
  Process of registering a company
2. 16.2
  Certificate of registration
3. 16.3
  Power to hold land
4. 16.4
  Registration of charges
5. 16.5
  Accounts of foreign companies
6. 16.6
  Service of process and notices on foreign companies
7. 16.7
  Returns
8. 16.8
  Penalties
9. 16.9
  Cessation of business