Company Sole Ownership Registration @ CAC CAMA 2020 – How many directors must a limited company have? Company law (Company and Allied Matters Act. CAMA) determines how many officials must be appointed to run private and public companies in Nigeria. As a matter of fact, before the implementation of the Companies Act 2020, all private limited companies were obliged to appoint a company secretary as well as a director. However, since 2020, when the relevant clauses of the Act became law, a company can now be run with the appointment of a sole director. That is to say, you can now run a limited company with just a one owner director.
A New Form of Business in Nigeria:
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As a matter of fact, hundreds of thousands of limited companies are expected to operate in this way – especially, businesses that provide professional services; such as consultants. These are what are called Sole Director Companies or sole director limited companies or sole director and shareholder. Do you like this business model? Then contact us for your own sole proprietor company ownership immediately.
Who Benefits from this Post?
As you can see, this post answers questions such as, what is a sole shareholder company. Can a company have only one director? Can I be a sole director of a limited company? An inherent question to be addressed also is, what happens if a sole director of a company dies? So, if you are in need of these and more insight into what CAMA 2020 provides for sole director ownership of a limited liability company, you are advised to read on.
Requirements for Company Sole Ownership Registration @ CAC CAMA 2020
To begin with, in this case of a company with a sole director, the director has to be a ‘natural person. That is a natural individual. On the other hand, however, another company can become a co-director if an individual has already been appointed. However, a company may have more than one director, and/or a company secretary if the company’s Articles of Association demands such a requirement.
Furthermore, such sole director’s limited company owners are not required to hold any particular qualifications; however, they must be over the age of 18, not banned from acting as a director, or be an un-discharged bankrupt. On the other hand, public companies (PLCs) must appoint at least two directors and a company secretary. At least one of the directors must be an individual, and the secretary must be qualified to fill the post.
What does Company sole ownership mean?
As a matter of fact, an individual company is the simplest form of business structure. Anyone can be a sole proprietor. The term Sole ownership simply refers to an individual who is involved in business and whose responsibility is now limited by the registered share capital of the business. This means, you can run a single company under your own name.
This form of company will soon become very popular in Nigeria. This is because it is simple, easy to create and has minimal costs. The disadvantage of an individual company is that the sole owner is responsible for all business decisions. Now, think about a sole director board resolutions!
Summing up: for Company Sole Ownership Registration @ CAC CAMA 2020
One of such changes brought into Nigeria’s corporate world by the new CAMA 2020 is the introduction of a sole director ownership of a limited liability company. But this does not prevent you from having more directors and secretary. The difference between this and the previous provisions is that a sole director ownership was not allowed and that such company must appoint a secretary. All other application formalities remain the same. Do you need to register your own private limited liability company now? Get our contact below and call immediately.
Our Corporate Services:
This article was put together by our team of corporate professionals at Complete Full Marks Consultants Ltd. It’s part of our efforts to educate and guide members of the public on changes brought about by the introduction of the 2020 CAMA. These changes has led to procedural changes also at CAC Nigeria. These changes affect how you go about your pre-incorporation and post incorporation needs; such as change of names, alteration of the MEMAT, rendering annual returns etc. The following business forms are affected. Private company limited by shares, private company limited by guarantee, public company, and incorporated trustee (NGOs).
Our corporate services cover all of these business forms; and our services take care of your pre-incorporation and post incorporation needs.
Our other entrepreneurship development and support services:
This is very extensive. As a firm of Chartered Accountants, there are a lot we can do for you in addition to what we have narrated above. We take care of your business start-up processes including generation of business ideas, business planning and feasibility analysis and entrepreneurship trainings. Recently, we are involved in the CBN/NIRSAL MFB/BOI loan scheme trainings. By this we have been able to help several businesses find fund for their business take-off or expansion.
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Contacting us is easy. You can call +234 8034347851, or 09053130518 (office). Email: firstname.lastname@example.org or email@example.com.
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Company Sole Ownership Registration @ CAC CAMA 2020:
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Founder/Managing Partner of Complete Full Marks Consultants Ltd. An Economist turned Chattered Accountant and Tax Practitioner with over 37 years of industrial experience.