ROLE OF PROMOTERS IN COMPANIES’ FORMATION IN NIGERIA: CAMA 2020 IN PERSPECTIVE

Abstract

Promoter undertake among other things to incorporate the company and ensure that such incorporation complies with the rules of CAMA. At times, it is impossible for the promoter to separate his or her intention from that of the duty of his or her office, most especially where there is pre-incorporation contract(s). The study finds out that often times conflict of interest do occur and without recourse to provisions of Companies and Allied Matters Act, promoter do breach rules as it relates to pre incorporation contract(s). The paper concluded that, for there not to be conflict of interest as it were, the rules have to be made as regards to means and ways of how pre-incorporation contracts be handled in order to prevent corrupt practices or conflict of interest that do occur at that stage. Doing this will bring sanity and transparency into the process of incorporation in Nigeria.