• Insurance business
  • Banking business: The Minimum Authorised Share capital is 25 billion.
  • Stock brokerage
  • Partnership with more than 20 members. Exceptions where no company must be incorporated here is in respect of firms of legal practitioners, Accountants and Cooperative Society registered by Law.
  • Pension custodians/Administration/fund managers/issuing houses
  • Aviation companies
  • Private Guards company
  • Foreign companies; the authorised share capital is 10 million.

EFFECT OF INCORPORATION OF A COMPANY S.37 CAMA

  • The company has power to hold property
  • The company becomes a juristic person that can sue and be sued in its company name,
  • The company is distinct from its members, having a common seal with perpetual succession.
  • It also has the powers of a natural person -S 38 of CAMA. Thus, it can join in the formation of another company.

POSITION OF A MINOR IN FORMATION OF A COMPANY

  • For a minor to join in the formation of a company as a shareholder, a member, there has to be two adults of full capacity in addition Ss. 18;S.20(2) CAMA
  • He cannot be counted for the purpose calculating the legal minimum of 2 persons-S 80(2) CAMA
  • Thus a minor is only restricted as to his capacity but not prohibited from joining to form a company. In terms of appointment as a Director, a minor is absolutely prohibited – S. 257 CAMA

CAN A COMPANY COMMENCE BUSINESS BEFORE INCORPORATION?
No. A company cannot start any business activities before incorporation- S 37 – 38CAM

Terms Used:
CAMA: Companies And Allied Matters Act