How to remove/appoint a company secretary in Nigeria

The secretary of every company can be changed from time to time if the company so desire. According to the Companies and Allied Matters Act (CAMA) 2020, a private company can elect not to have a secretary.

It is however, worthy to note that a secretary can be an individual or a corporate body.

The following steps are taken for the removal/appointment of a company secretary.

  1. A resolution would be passed for the removal/ appointment of a secretary by members of the company.
  2. Where it is a removal, there would be no need to provide any letter but where it is an appointment, a consent letter must be provided by the individual or corporate body accepting the role of secretary.
  3. The necessary application forms would be completed on the CAC Post-incorporation portal of the company along with the date of the resolution.
  4. The application must be authenticated by someone from the company, usually a director, this is done by writing the name of the person who gave the instruction and the position in the company.
  5. The statutory fees are paid and the necessary documents uploaded and filed.

Where it is approved, a status report reflecting the changes would be sent to you.

Note; As with all CAC Post-incorporation filings, it is important to have up to date Annual returns filed.

Team 618 bees

 

618 Bees can help you quickly and easily help appoint/remove the company secretary of your company in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

How to change the name of your company in Nigeria

The Name of a company can be changed if so desired by the members of the company.

The following are steps to change the name of a company;

  1. A resolution must be passed by the members of the company that the name of the company be changed and the new name of the company be approved.
  2. An application for the reservation of the new name would be made and if approved you can proceed to the next phase. The reservation of name is done on the pre-incorporation portal.
  3. After reservation of name, the Memorandum and Articles of Association (MEMART) would be rewritten according to how it was at incorporation but the company name on the new MEMART would be changed to reflect the new name.
  4. Copies of the MEMART along with the resolution would be taken to the Federal Inland Revenue Service (FIRS) office for assessment and stamping. The payment for the alteration is usually done on the FIRS website.
  5. The next step is to apply for the change of name on the post-incorporation portal of the company using the availability code gotten from the reservation of the new names.
  6. Complete the Forms and upload all necessary documents.
  7. On approval, a new certificate and status report would be given.
  8. The MEMART would be sent to the Corporate Affairs Commission (CAC) for stamping.

Note; for all CAC post-incorporation applications to be approved, the company must have filed up to date Annual Returns.

Team 618 Bees

 

618 Bees can help you quickly and easily help change the name of your company in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

How to change your business address – Limited Liability Company or Business Name

To change the address of your business name or limited liability company, your business should have filed up to date Annual Returns with the corporate Affairs Commission (CAC).

A company would during a meeting pass a resolution for the Address of the company to be changed. After the resolution is passed, an application for change of Address would be made on the CAC post-incorporation portal by an accredited agent by completed the required form. The resolution would be uploaded and the completed application Form must be authenticated by a director of the company. As soon as the change of Address application is approved, a status report f the company would be provided by the CAC showing the new address of the company.

A business name does not need a resolution before the change of Address can be effected. In an application for change of business name a completed Form is the requirement from the CAC. However, the name of the proprietor authenticating the change of Address application must be stated.

An authentication is the authority a director/proprietor gives for the change of Address to be effected and it is done by simply writing the name and designation of the person that gave the instruction for the changes in the Company.

Team 618 Bees

 

618 Bees can help you quickly and easily help you change the address of your company or Business Name in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your registration with the Coporate Affairs Commision.

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

 

Action Items For Your Business As 2021 Ends 

  1. Annual Returns Filing for Business Names, Companies and Non-profit Organizations

618 Bees provides this service as at when due or it can be subscribed for ahead of time. Annual Returns is a comprehensive report on a company’s activities throughout the preceding year and it is a way of making the Corporate Affairs Commission (CAC) aware that your company is still carrying on business. As the name implies, it is expected by the commission to be filed annually, as it gives information regarding any post incorporation changes that have been effected by the Company. It is thus very important and continuous failure to comply may be taken as an indication by the CAC that the company no longer carries on business and may therefore result in the company being struck off /delisted from the register of companies, while late filing attracts penalty.

  1. Annual General Meeting Minutes for Companies

Have you completed your company’s annual meeting minutes for the 2021 financial year?

This is important because in line with good corporate governance policies, companies must hold annual meetings and draft annual meeting minutes, it’s important to know if this requirement applies to your company.  You can contact our Call Center to speak to us about this.

  1. Starting a new business or quitting paid employment in January 2022?

If your plan is to leave paid employment to start your own thing or your plan is to add another business to your portfolio, then what better time to get the business registration process started than now?

618 Bees offers you the quickest way to get your company started, and we don’t stop there! 

  1. Closing a Business Before Year-End?

Closing a Business Name or company before 2022?  Closing or Winding Up a business is more than just the decision to shut it down and letting your vendors and clients know. 618 Bees can talk you through the required steps you must take to close your business the right way and remain compliant with the requirements of the Companies and Allied Matters Act (CAMA).

  1. Business Name Change or Upgrade?

Despite your best efforts to choose the perfect name for your company, there may come a time when that name is no longer the best fit. Perhaps the business name no longer accurately reflects your brand or there are legal considerations at play. Regardless of the reasons to make a business name change, it’s a process that many entrepreneurs find confusing. The steps involved can vary depending on whether the business entity is registered as a Business Name or as a company.

You may also want an upgrade from a Business Name to a limited liability company(LLC) because of some anticipated expansion in the new year hence a Business Name registration will no longer serve your purpose. For this kind of change, it’s understandable that you want to retain your business goodwill by doing an upgrade to preserve the known name rather than register an entirely new entity. This can be a complex process for any business owner, as the process can be overwhelming but not to worry, as we are here to take the stress off you while to focus on scaling up your brand.

618 Bees can talk you through both the name change application and the application to upgrade from a Business Name to an LLC, while you work on the business.

  1. Sign up for a legal Retainer or for our bespoke company secretarial services in the newyear perhaps?

This will ensure that your legal needs are covered all year round. We offer three (3) different Retainer packages to suit particular business needs. With our retainer plans, your business legal needs are covered all year round on our priority list. Also, professional fees for most of our products/services can be purchased for less with a minimum payment for out of pocket expenses.

The end of the year is also the perfect time to get compliant and end the year in good legal standing whether its setting up a new business to commence operations in the new year, upgrading a Business Name to a company, registering your intellectual property rights for your business or making sure your compliance filings are all up to date. As you take time reflecting on the work done in 2021 and taking up one or two of the action items listed above, we have provided below a list of other filing and compliance processes 618 Bees can help with:

  • Business Licenses & Permits
  • Amendments, Modifications & Name Changes
  • Trademark Search and Filings
  • Copyright Filings
  • Patent and Design Filings
  • Corporate Amendments
  • Corporate Searches
  • Land/Property Searches
  • Certificates of Good Standing
  • Corporate and Personal Income Tax
  • Bookkeeping and Payroll services
  • Customized Bylaws & Resolutions
  • SON Registration
  • NAFDAC Registration
  • Resident Permit and Expatriate Quota
  • Contracts and Agreements Review
  • Contracts and Agreements Drafting
  • Acquisitions/Mergers
  • Pioneer Status Application (Tax Exemption)
  • Marriage License Applications

We hope you find this information helpful. Feel free to reach out to us via our dedicated Call Center lines; +2349017190079 (WhatsApp available) or 01-2803791 or by email via hello@618bees.com. We look forward to assisting you with all of your business filings and year-end compliance filings.

— Team 618 Bees

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

How to close your Company in Nigeria

The closing of a company in Nigeria is called winding up and it can be done voluntarily by court order or by supervision of the court.

The procedure for winding up is done at the Federal High court where the company’s head office or registered address is. An application for winding up can be brought by the company/directors, creditors, official receivers, contributories, a trustee in bankruptcy or legal representative or even the commission and it can be done jointly or severally.

A company can be wound up on the following grounds;

  1. By a special resolution to dissolve the company.
  2. When the company is unable to pay is debts.
  3. When the company does not file statutory report. In most cases they are delisted from the list of companies by the commission.
  4. Where the number of shareholders does not meet the required standard for companies under its type of registration.
  5. Where the court deems it just and equitable.

An application for winding up is brought to the Federal High Court through a petition. The court can dismiss it, adjourn for further hearing, grant an interim order or grant the order as prayed.

The winding up of a company voluntarily is deemed to have commenced the moment a special resolution is passed by the company for winding up.

Team 618 Bees

 

618 Bees can help you quickly and easily help close/wind up your company in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your registration with the Corporate Affairs Commission (CAC).

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

How to close your Business Name in Nigeria

After incorporation of a business, the proprietor or proprietors of the business can decide to close the business name on reasonable grounds or upon the death of a proprietor, the Legal representative can apply for the business to be closed. The process of closing a business name in Nigeria is called cessation of business.

To apply for cessation of business, the applicant must provide a consent letter for the cessation of business addressed to the Registrar of the Corporate Affairs Commission (CAC). A death certificate would be required where the proprietor is dead and the identification card of the Legal representative. Where the proprietor(s) is applying for himself/herself, his/her identification card would suffice.

The application is usually done on the CAC  post-incorporation portal by an accredited agent of the Commission.

Before any cessation can be concluded the applicant must have filed up to date Annual Returns.

Team 618 Bees

 

618 Bees can help you quickly and easily help you apply for the Cessation of your Business Name in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your registration with the Corporate Affairs Commission (CAC).

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

How To Register a Co-operative Society in Lagos State

Co-operative societies in Lagos State are overseen by the State Ministry of commerce, Trade and Co-operative and its registration is based on the location of the proposed co-operative society. The registration steps have been broken down in stages below;

Zonal office: The registration of a co-operative in Lagos State depends on the Zone. The Zonal office to commence registration is usually decided by the proposed official address of the co-operative society. For Instance, there is a zonal office for Eti-osa covering everyone intending to have their proposed address within the Eti-Osa local government axis of Lagos State.

Name of the Co-operative: an availability search of the name of the co-operative would begin. If the name is available, the Members of the co-operative would be notified and if not, they may be required to change the proposed name of their co-operative.

Forms: The members would be required to pay a statutory fee for the registration of the co-operative upon which a form will be given to them for completion. This form would record all the members and the executive committee (Exco) of the co-operative. Their names, addresses, occupation and signatures will be inputed on the Form before submission. The addresses of all exco’s and members must be within Lagos and its environs. The Co-operative must have up to 3 exco members.

Inauguration: After payment and completion of required Forms, a date is usually given for inauguration. The Zonal officers would inaugurate the Co-operative society and it will be deemed to have kicked off operations.

Certification: It usually takes up to 3 months before the Certificate of the Co-operative society would be issued by Lagos State to the co-operative.

Team 618 Bees

 

618 Bees can help you quickly and easily help you register your co-operative society in Lagos State, Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your registration with the Lagos State Ministry of Commerce, Trade and Co-operative.

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

How to upgrade your business name to a limited liability company in Nigeria

To upgrade your business Name to a Limited liability company, you must first apply for the consent to upgrade your business Name from the Registrar of the Corporate Affairs Commission (CAC). If it is denied, you won’t be able to proceed.

It can be denied on the basis that a company already exist with a similar name or for whatever reason the registrar deems fit. However, upon approval of a request for consent, you can proceed with the application online.

The application for consent is done on the CAC portal. After approval, you can then input the required details for the registration of a limited liability company. The details required here includes details of the company’s shareholders, directors and company secretary where applicable.

This new application process is totally different from the old process where a business name owner was required to apply for cessation of business before proceeding with upgrade.

Team 618 Bees

 

 

618 Bees can help you quickly and easily help you upgrade your Business Name to a Limited Liability Company in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your registration with the Corporate Affairs Commission (CAC).

 

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

How to amend/alter the MEMART of your Company in Nigeria

MEMART is the abbreviation for the company incorporation document known as Memorandum and Articles of Association, which is the part of your incorporation documents that reflects the structures, governance, objectives, shareholding, rights and obligations of the company and its members.

A company’s MEMART can be amended from time to time to include or remove a particular objective(s) or terms. To do this, there must be a special resolution passed by the board of the company stating and accepting the changes to be reflected on the MEMART. A new MEMART would be drafted to include the part which was amended or added to it. The company is required to pay the Statutory stamp duty fees online for each copy of the new MEMART after an assessment has been done by an officer of the Federal Inland Revenue Service (FIRS). After which the documents are to be stamped at the nearest stamp duty office (Federal Inland Revenue).

After stamping the documents with the FIRS, a statutory fee for the alteration of the MEMART is made to the Corporate Affairs Commission (CAC). The stamped documents would then be sent to the CAC office for verification and filing.

team 618 Bees

 

 

618 Bees can quickly and easily help you file amend/alter your Company’s MEMART in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

Procedure for share transfer and share surrender in Nigeria

Before any company can be incorporated it is required by the law to have an authorised share capital which is divided among the members according to their contribution in the company. These shares can either be ordinary or preferred shares.

A subscriber in the Articles of Association or a shareholder can transfer their shares in whole or in part to another individual or company or can surrender the shares back to the company.

The transfer of shares to another individual or company is called share transfer. A share transfer is done internally through an instrument of transfer. It is however, deemed to be properly transferred when the name of the transferee is reflected in the company’s register of members in regards to shares upon an application by the transferor. Electronic instrument of share transfer is acceptable. A share transfer must be executed by both parties either by themselves or on their behalf. Where a share transfer is in writing it can be an acceptable means of transfer provided it is accepted by the director.

Share surrender on the other hand, is the surrender of shares back to the company by an individual or corporate body who subscribed for shares in the company. The first step in share surrender is for the shareholder to write a letter to the company stating the amount surrendered. Also, a special resolution by the company would be prepared to reflect the shareholder’s intention to surrender the shares back to the company and the number of shares so surrendered, it would also reflect the new share structure of the company. Finally, the application for share surrender would be filed with the Corporate Affairs Commission (CAC).

Lastly, as an unspoken rule, before any change can be effected for a company at the CAC, the company must have filed up to date Annual returns.

Team 618 Bees

 

 

618 Bees can quickly and easily help you file share transfers, surrenders and transmissions for your company in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

 

Procedure for share transfer and share transmission in Nigeria

 The procedure for share transfers includes;

  1. Prepare an instrument of Transfer.
  2. The instrument of Transfer must be signed by the transferor and the transferee or on their behalf.
  3. The instrument of Transfer must be delivered to the company.
  4. Upon an application by the transferor, the name of the transferee would be written in the company’s register.

Unless the name of the transferee is written in the company’s register, the transferor is deemed to be the shareholder. An electronic means of transfer is deemed an acceptable means of transfer.

 

The procedure for share transmission includes;

Transmission of shares is required where there is a deceased shareholder. The only person recognised by the company to process shares of the deceased is the legal representative of the deceased where he/she was a sole holder of the shares or the surviving holder where he/she was a joint holder of shares.

  1. The Legal representative/surviving shareholder may be required to produce evidence by the company. The evidence would be determined by the company. It could be a death certificate etc.
  2. Nominate himself or another person to become a holder of the shares.
  3. Where he nominates himself, he would notify the company in writing and sign that he nominates himself but where he nominates another person, he would testify by executing a share transfer on behalf of that person.

The company has the right to refuse or suspend any of such request for share transmission as they would have under transfer of shares.

Reference CAMA LLN,2020 Section 175- 179

 Team 618 Bees

 

 

618 Bees can quickly and easily help you file share transfers and transmissions for your company in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

Succession Planning For Your Business

Business succession planning is a series of logistical and financial decisions about who will take over your business upon retirement, death, or disability. One of the biggest challenges you will face as a small business owner is how best to pass on your business to the next generation. You need to make the right decisions for you and your business. This process can be made easier if you plan the succession process early – ideally when you set up the business.

Your ideal succession plan should include:

  • Your key goals for the succession process.
  • A timetable of the transition stages, from identifying a successor to the full transfer of responsibilities.
  • Contingency plans in case the unforeseen happens, such as your intended successor declining the role

Every business needs a succession plan to ensure that operations continue, and clients don’t experience a disruption in service. If you don’t already have a succession plan in place for your small business, this is something you should put together as soon as possible.

While you may not plan to leave your business, unplanned exits do happen all the time. Generally, the closer a business owner gets to retirement age, the more urgent the need for a plan. It is very important for business owners to write a succession plan when a transfer of ownership is in sight, and it should include when they intend to list their business for sale, retire, or transfer ownership of the business. This will ensure the business operates smoothly throughout the transition.

We discuss 4 (Four) common ways to transfer ownership of your business below;

  1. Passing ownership interests to a family member (Heir):

The option of picking a heir as a successor is a popular option for business owners, especially those with children or family members working in their organization. It is regarded as an attractive option for providing for your family by handing them the reins to a successful, fully operational enterprise. Passing your business on to an heir is not without its complications though.

A few things to consider here includes determining who will take over, especially when you have more than one interested family member, providing clear instructions as regards compensation, putting into consideration a buy-sell agreement and then finally determining future leadership structure. Failing to address these issues may lead to a chaotic transition process.

 

  1. Selling Your Shares or Ownership Interests to a Co-owner

Where you founded your business with a partner or partners, you may be considering your co-owner(s) as potential successors. Many partnerships draft a mutual agreement that, in the event of one owner’s untimely death or disability, the remaining owners will agree to purchase their business interests from their estate. This type of agreement can help ease the burden of an unexpected transition—for the business and family members alike. A spouse might be interested in keeping their shares but may not have the time investment or experience to help it blossom. A buy –sell agreement ensures they’re given fair compensation, and allows the remaining co-owner(s) to maintain control of the business.

The only set back to this form of succession is the fact that this requires a lot of cash kept on-hand. This means that your co-owner(s) must be prepared to buy-out your shares, theoretically at any moment.

 

  1. Selling your business to a key employee.

In a situation where you don’t have a co-owner(s) or family member to entrust with your business, a key employee might be the right successor. Consider employees who are experienced, business-savvy, and respected by your staff, which can ease the transition. If you’re concerned about maintaining quality after your departure, then picking a key employee is generally more reliable than an outside buyer.

Just like selling to a co-owner(s), a key employee succession plan requires a buy-sell agreement. Your employee will agree to purchase your business at a predetermined retirement date, or in the event of death, disability, or other circumstance that renders you unable to manage the business.

The major draw back in this option is the lack of funds as most employees aren’t in the financial position to buy the business they work for. Even if they are, having enough liquid cash on hand is another challenge.

  1. Selling your business to an entrepreneur outside your organization.

When there isn’t an obvious successor to take over, business owners may look to the community: Is there another entrepreneur, or even a competitor, that would purchase your business? To ensure that the business is sold for the proper amount, you will want to calculate the business value properly and ensure this is updated frequently.

One of the major drawbacks to this succession plan is the unexpected as it is nearly impossible to predict exactly what the sales process will have in store. The process of selling a business to an outside party is complex and could encounter roadblocks like: your business not being as valuable as you anticipated, lack of credible buyers, your business not being able to sell at all, and more.

In conclusion, succession plans are commonly associated with retirement; however, they serve an important function earlier in the business lifespan: If anything unexpected happens to you or a co-owner, a succession plan can help reduce headaches, drama, and monetary loss. As the complexity of the business and the number of people impacted by the exit grows, so does the need for a well-written succession plan.

Team 618 Bees.

Sources: www.fitsmallbusiness.com , www.forbes.com

 

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

How to remove a Trustee from your Non-profit Organisation in Nigeria

The Companies and Allied Matters Act Cap LN 2020 Sec 834 provides that Where a body or association intends to replace some or all its trustees or to appoint additional trustees, it may by resolution at a general meeting do so and apply in the prescribed form for the approval of the Commission.

Although, the wordings of CAMA did not state removal, it is the same procedure for replacement and appointment that happens with the removal of a trustee from an organisation.

For a Trustee to be removed, the provision states that a resolution must first be passed at the general meeting of the Organisation. After the resolution is passed, the Organisation is to apply for the removal of the Trustee in the prescribed form.

The organisation will do a newspaper advert on two national dailies to inform the public of the likely changes. The time frame for the advert is 28days and such would be displayed on the entrance of the organisation headquarters or branches where members are more likely to see it for 28days. The publication and notice shall call for objections if any. Where there is an objection, it shall be reported to the Commission. Where there are no objections after 28days, the commission would effect the change so applied for.

Team 618 Bees

 

 

618 Bees can quickly and easily help you file an application for the removal/appointment of a Trustee for your organization in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

Filing Financial Statements under the Companies & Allied Matters Act in Nigeria (CAMA)

Financial statements are records of the financial activities of a company over a period of time.

At the end of every financial year, the director of a company is required by the Companies and Allied Matters Act (CAMA) to prepare a financial statement for the company. The financial statement must show the following.

  1. The balance sheet of the accounting year
  2. Profit and loss or Income and expenditure (for companies not trading for profit)
  3. Notes on the account
  4. The directors report
  5. The auditor’s report
  6. Financial summary
  7. For a holding company, the group financial statement is required.
  8. A private company need not include the listed information below;

i. Statement of accounting policies .

ii. State of source and application of fund.

iii. Changes in equity

iv. Value-added statement for the year.

Additional requirement may be included to the above as required by applicable accounting standards.

Not every company is required by CAMA to file their financial statement along with their Annual returns. Small companies are not required to file their financial statements when filing Annual returns. The CAMA defines a small company as a company where its Annual turnover does not exceed N120, 000, 000 (One hundred and Twenty Million) and where the Net asset does not exceed N60,000, 000 (Sixty Million). Every other company that the turnover exceeds that of a small company would file as a company other than a small company and is required to file Annual returns with their Financial statement attached.

Team 618 Bees

 

 

618 Bees can quickly and easily help you file your Financial Statements as required by the Company and Allied Matters Act 2020 in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

How To Get Exemption For A Foreign Company To Operate In Nigeria

Every foreign incorporated company that wishes to operate in Nigeria is required to register its company with the Corporate Affairs Commission. However, there are certain companies exempted.

Foreign companies are exempted from registering in Nigeria in the following instance;

  1. Where the foreign company was invited by a donor company or an international organisation for a specific individual loan project.
  2. Where the foreign companies were invited by the Federal Government to execute a specific project.
  3. Foreign companies with expertise such as Engineering or Technical expertise invited on the approval of the Federal government or its agency or with any body or individual carry on a federal government contract and for that specific purpose.
  4. Foreign government owned companies solely for the promotion of export.

An application for an exemption must be made to the Minister and should be in writing and would include the following;

  1. The details of the company, which is the Name and address of the business outside Nigeria and proposed name and address of the business in Nigeria.
  2. The particulars of the directors, partners and principal members.
  3. A certified copy of the Memorandum of Association, charter, statutes or any other defining instrument as may be required and if not written in English translated.
  4. Details of the contact person required to receive notices and service of processes in Nigeria.
  5. The business and the expected timeframe for completion
  6. Particulars of any project previously carried out by the company as an exempted foreign company if any.

An application may be granted where the Minister deems it expedient to do so. An exemption for a foreign company must have an expected time frame.

An exemption can also be revoked anytime where the foreign company fails to meet up with the provisions of Corporate and Allied Matter Act (CAMA).

Where the exemption is granted, the Minister shall publish in the gazette of the Federal government, the name of the company granted exemption, the period and the project it was granted for.

Team 618 Bees

 

 

618 Bees can quickly and easily help you apply for an exemption for your foreign company in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

Family Business Can be Big Business

 

According to the Family Firm Institute, family-owned businesses account for two-thirds of businesses worldwide, making them essential for both economic growth and job creation. So how can one make a family business more successful if they play such an important roles in the economy of our nations?

Launching a business is hard enough without the added pitfalls and potential baggage of family relationships. But this not withstanding, compared with other business, family businesses have some great advantages — mainly a dedicated pool of people ready to stand behind your effort. Some other benefits of starting a business with family includes the following;

  • Common values– you and your family are likely to share the same ethos and beliefs on how things should be done. This will give you an extra sense of purpose and pride and a competitive edge for your business.
  • Strong commitment– building a lasting family enterprise means you’re more likely to put in the extra hours and effort needed to make it a success. Your family is more likely to understand that you need to take a more flexible approach to your working hours.
  • Loyalty– strong personal bonds mean you and family members are likely to stick together in hard times and show the determination needed for business success.
  • Stability– knowing you’re building for future generations encourages the long-term thinking needed for growth and success. However it can also produce a potentially damaging inability to react to change.
  • Decreased costs– family members may be more willing to make financial sacrifices for the sake of the business. For example, they may accept lower pay than they would get elsewhere to help the business in the longer term, or defer wages during a cashflow crisis. You may find you don’t need employers’ liability insurance if you only employ close family members.

If your startup is a family business, you’ll need to take extra steps to avoid burnout, ensure on-the-job harmony, all of which can be achieved with careful management and constant communication.

Research has shown that some of the biggest companies in the world—including Wal-Mart, BMW, Ford, the Guardian Newspaper, Sheraton Hotels Lagos, Eleganza, First City Monument Bank and the Former Diamond Bank —are family-owned businesses, a far cry from the small retail businesses many associate with family-run companies. While family businesses may be a major economic driver, only a very few endure into a second generation and even a fewer percentage last into a third generation, and fourth generation.

So what’s the secret for a successful family-run business? We’ve rounded up five tips to ensure your family business, or the one you may be working for, endures through the generations.

  1. Communication
    Families have their own way of communicating, and, although they most times do not employ the best communication skills, they can intentionally defy convention and make open, regular communication an essential part of the family business. When you sense communication problems, confront them immediately. Where communication becomes more challenging, then an expert from outside can be consulted for a resolution.
  2. Set Boundaries

Leaders of successful family-owned businesses know that setting boundaries and sticking to them is critical to establishing and maintaining success. Institute and uphold a clear separation between family and business. In other words, keep family issues out of the boardroom, and keep work at the office.

  1. Embrace Innovation

When it comes to longevity, and the success that comes with it, changing with the times is essential for any business, especially multigenerational family businesses. Whether it is an aversion to new technology or resistance to changing cultural norms, a family-run business—and the people behind it, regardless of age—must evolve or risk alienating both employees and customers.

  1. Practice good corporate governance

Setting boundaries also extends to the corporate governance of family-run companies. Good governance requires the involvement of leaders outside the family. This oversight—employed by leading family businesses worldwide—typically takes the shape of a professional, advisory, or supervisory board comprised of non-family members with a limited number of family representatives.

  1. Plan for the future

Successful family businesses don’t just let the chips fall where they may. They plan for the future, creating family business succession plans long before they actually need them. They secure the future by being able to identify talented employees, both within and outside of the family, investing in them early on to ensure excellent leadership in the future.

Whatever the family ties, however, starting a business with a spouse, parents, siblings, children or other family members presents unique challenges over and above the usual problems a startup faces. But as many family businesses throughout the world transition to new generations of leaders, their success and continuity will depend on the management and leadership styles/methods they have intentionally adopted to guide the day to day running of their businesses.

Team 618 Bees

 

Sources:

www.startupnation.com, www.waldenu.edu, www.bgateway.com, www.kellogg.northwestern.edu

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

How to change the name of your church in Nigeria

Section 832 of the Companies and Allied Matters Act allows for the change of the name of an incorporated Trustee. A church is registered as an incorporated Trustee under the provisions of the Companies and Allied Matter Act (CAMA) 2020.

For the name of a church to be changed, the church will have to apply to the Corporate Affairs Commission (CAC) in the prescribed form along with a Copy of minutes of the meeting approving the change duly certified by the trustees. Other requirements here includes evidence of Newspaper publication in at least two daily newspapers, copy of notice displayed in headquarters and branch(es) of the Church if any. Before the application for change of name can be granted, the publication and notice of the change in name of the church must have been displayed or placed for at least 28days.

The essence of the 28days notice is to notify the general public and members of the church of the intention to change the name of the church and to give room for any objection. Where there is an objection within the 28days period, the commission shall look into it to see if the objection holds weight. Where a valid objection is raised, the change of name would not be approved but where there are no objections, the CAC will approve the change after 28days period elapses.

Team 618 Bees

 

 

618 Bees can quickly and easily help you change the name of your Church/Association/Non-profit/Foundation in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

How To Amend The Constitution of Your Association/Foundation/Non-Profit in Nigeria

The amendment of the constitution of your Association/Foundation/Non-Profit is done by a resolution passed by a simple majority of the members and approved by the Corporate Affairs Commission (CAC). The resolution can be indicated in the minutes of the meeting where the resolution was passed. Other requirements for this filing includes two (2) newspaper adverts for 28days, one of which must be a national daily while the second advert can be one circulating in the area where the foundation is located.

An amendment of the constitution of your Association/Foundation/Non-Profit is subject to the provisions of section 827 and 828 of the Companies and Allied Matters Act (CAMA) 2020.

Team 618 Bees

 

618 Bees can quickly and easily help you amend the constitution of your association/non-profit/foundation in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

Legal Advise for Start-ups

 

 

The value of investing in legal advice for your business cannot be underestimated. By receiving proper legal advice early on in the business life cycle, even when you’re a startup, you could potentially make costs savings and allow your business to operate more efficiently.

Legal fees are likely to be a perceived barrier for a business owner to engage with a solicitor to discuss and receive advice regarding their business. Whilst it is important to manage costs and expenses for any company, the value of taking legal advice regarding the operation is paramount, as whilst owners are fantastic at commerce, sometimes the legal and regulatory framework which the business (and business owners as directors and shareholders) operate in, can be somewhat overlooked.

So whether you are just launching your venture or busy growing it, you face critical decisions about every aspect of your business. Some of the legal issues founders typically have to address at the early stages are related to entity formation, intellectual property protection, compliance with employment laws, tax planning, and financing. Below is a breakdown of a few areas where a start-up will require legal advise;

  1. Business Formation: This includes decisions regarding incorporating the business either as a sole proprietorship or a limited liability company. The founders also have the option of either registering as a limited liability partnership or a limited partnership. It is important that the proper structure that will protect all investors in the business and best suite the business objectives is decided on at this stage.
  2. Regulatory Compliance: This includes advise on the appropriate licenses, permits, approvals, statutory filings, etc that are required to properly carry on the business. For example if you want to lend money to customers for interest in Lagos State, you will definitely require a lending License. If a new company must succeed, then its important that the right decisions regarding regulatory compliance are made to avoid being on the wrong side of the law.
  3. Business Contracts/Agreements: This will usually contain the terms and conditions under which a business intends to trade with both suppliers and customerS. These are very important documents as they create the legally binding rights and obligations for each party. Terms of business will cover specific details relating to the supply of goods or services, when the business can raise its invoice, the payment terms of the invoice and limiting the supplier’s liability amongst other things.  These terms must reflect the way the business is conducted so the protection given is relevant and effective. We have seen clients copy and download agreement terms from the internet, and however tempting this is, it is a dangerous approach which may leave the company exposed. These types of generic terms may not provide the relevant protection required as there may be gaps or they may not cover specific issues relating to the business. If your startup trades with consumers and/or online, then there are multiple regulations and laws which will apply to this type of business and it can be onerous to navigate by yourself, as these legislations are highly prescribed.
  4. Brand Protection: This is another area that a new business must consider. This is not limited to protecting your own brand alone, as any new business will need to conduct research to ensure that it does not step on the toes of any other brand. We have advised on several cases where clients have had to send letters to other businesses or their lawyers, stating that the new business infringes their trademark or other intellectual property rights.

Copyright arises automatically in relation to the business name and/or branding, but this only prevents copying. A trademark provides relevant protection as it protects the name and branding which is potentially the same or similar. Trademarks give the business owner a monopoly regarding the business name or brand for the specific class of goods or services they deal in, which can be very valuable.

  1. Shareholding and management structure: Business owners must consider how they intend to regulate the relationship between the founders/shareholder/investors, so that all parties are clear on the mechanisms and procedures upon the occurrence of certain events. Shareholders/Founders’ Agreements deal with these aspects and include, amongst other things how significant decisions of the business are decided between the shareholders, the procedure if a shareholder wishes to leave the business (including pre-emption rights on the transfer of shares), restrictions on the shareholders both whilst they are a shareholder and after they have sold their shares to protect the business. The shareholders agreement or Founders’ Agreement is a valuable tool for any business as it allows the owners to agree and have clarity regarding the procedures and mechanisms required in order to run the business and to deal with owners when things go wrong.

Startups that seek legal advice early can avoid some of the most common mistakes and pitfalls that can trigger legal issues, ruin deals, cause financial repercussions, or limit their ability to reap the full rewards of their idea. So, although the value of legal advice for startups might seem like a high initial cost but as we have seen the value in obtaining advice at the out-set and having clarity on the legal issues facing the business can far outweigh the legal costs.

 

Team 618 Bees

 

Sources: www.launchtothrive.com, www.startupmagazine.co.uk, www.inc.com, www.worspace.co.uk

Source: https://startupsmagazine.co.uk/article-investing-legal-advice-startup

https://www.inc.com/young-entrepreneur-council/stick-to-it-importance-of-a-budget-for-startups.html

https://www.workspace.co.uk/content-hub/business-insight/projecting-start-up-costs-for-a-new-business

How to dissolve a non-profit organization in Nigeria

Non-profit Organisations registered with the Corporate Affairs Commission in Nigeria can only be dissolved by a court of competent jurisdiction. This can be done through a petition.

A petition is a formal request seeking an order from the court and in this instance a petition is a request to the court for an order to dissolve a Non-profit Organisation.

All persons who might be affected by the dissolution of the Non-profit organisation must be kept on notice on the decision to dissolve the organisation.

Where the application for the dissolution of a Non-profit Organisation is granted, the assets of the organisation after all debts and liabilities have been settled would be transferred to an association with similar objectives agreed by members. This is because a non-profit organisation is not in the business of making profit but to carry out charitable deeds so no individual can lay a claim on the property of a non-profit organisation even if he was the donor.

Accordingly, persons who can apply for the dissolution of the organisation are the governing body or council, one or more trustees, members of the organisation constituting at least 50 percent and the commission itself.

These are the grounds upon which an association can be dissolved in Nigeria;

  1. Where the objective of the organisation formed has been fulfilled or carried out, they can apply for dissolution of the association.
  2. Where the organisation was formed to exist for a specific period of time.
  3. A situation where the objectives of the organisation contravenes public opinion or has been illegal by means of a new law or by public policy.
  4. Where it is just and equitable to dissolve the association
  5. Where the commission has withdrawn or revoked the Certificate of incorporation.

 

Team 618 Bees

 

618 Bees can quickly and easily help you dissolve your Non-profit Organization in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

The 3 mandatory compliance filings for Non-profits registered in Nigeria under the CAMA 2020.

There are three compliance filing mandatory for all Non-profits organisation to file under the Companies and Allied Matters Act (CAMA) 2020, and they include the Bi-Annual Returns (Filed in July and January each year – every 6 months) and Annual Returns filings.

Bi-Annual returns was recently introduced by the CAMA 2020 in section 845. It states that all non-profits organisation must file their financial statements twice a year. The first filing is between the period of June, 30th to 15th of July of the same year which reveals the details of expenditures and sources of income for the period of 6months of the filing year and the second filing is de between the 31st of December to the 15th of January of the next year for the second 6 months. it shows the statement of affairs of the Non-profit organisation whether there is any debt, judgement, liabilities, source of income, expenditure, etc.

The importance of this filing is to checkmate the financial activities of the non-profit organisation and it helps to declare the status of their finances and the stream of income and expenditure. Default in filing this attracts a fee of N500 per day from each Trustee of the non-profit.

Annual Returns is the second statutory filing for a non-profit. Annual returns are yearly statutory requirements imposed by section 848 of the Companies and Allied Matters Act 2020. Annual Returns help to determine whether the non-profit is active or inactive. Annual returns for incorporated trustees become due on the 30th of June to the 31st of December and each non-profit is required to file this each year except on the year of their registration. This must be accompanied by the organisation’s audited financial statement.

Team 618 Bees

 

 

618 Bees can quickly and easily help you file both your organization’s Annual and Bi-Annual Returns in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

Procedure for dissolving an Incorporated Trustee/Foundation/NGO in Nigeria

The procedure for dissolving or closing down an incorporated Trustee/Non-profit organization in Nigeria is provided for under section 850 of the Companies and Allied Matter Act 2020 (CAMA). Organizations known and described as Incorporated Trustees/Non-profit in Nigeria includes – Churches, Non-governmental organizations, Foundations, Associations, etc.

Below is a detailed breakdown on how to close or dissolve one;

  1. Petition to the court for dissolution brought by any of the following;

i. one or more trustees;

ii. members of the association constituting at least 50% of the total membership; or the Commission.

  1. The grounds on which the body corporate may be dissolved could be any of the following reasons — i. the aims and objects for which it was established have been fully realised and no useful purpose would be served by keeping the corporation alive; ii. the body corporate is formed to exist for a specified period, that period has expired and it is not necessary for it to continue to exist; iii. all the aims and objects of the association have become illegal or otherwise contrary to public policy; iv; it is just and equitable in all the circumstances that the body corporate be dissolved; and v; the certificate of registration of the association has been withdrawn, cancelled or revoked by the Commission.
  2. At the hearing of the petition, all persons whose interest or rights may, in the opinion of the Court, be affected by the dissolution shall be put on notice.
  3. If in the event of a winding up or dissolution of the corporate body there remains, after the satisfaction of all its debts and liabilities, any property whatsoever, the same shall not be paid to or distributed among the members of the association, but shall be given or transferred to some other institutions having objects similar to the objects of the association: Provided that the institution shall be determined by the members of the association at or before the time of dissolution.
  4. If effect cannot be given to the provisions of subsection (4), the remaining property shall be transferred to some charitable object.

 

Team 618 Bees

 

618 Bees can quickly and easily help you dissolve your Non-profit Organization in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

ISO Certification in Nigeria

ISO its an acronym for International Organization for Standardization. The International Organization for Standardization (ISO) is
“an international standard-setting body composed of representatives from various national standards organizations’. The organization develops and publishes worldwide technical, industrial and commercial standards. By doing this, the ISO helps to protect the end users by ensuring the safety of the products through the standardization of products and services.

The ISO is an independent international non-governmental organization with experts that have developed a globally acceptable standard for products and services. The ISO Certification is an approval from the body showing that an organization has met the international standard developed by the ISO.

The ISO facilitates world trade by providing a standard to be adopted by all countries. The effect is to make products safe, reliable and of good quality. ISO Certification in Nigeria is the same as ISO Certification worldwide.

There are various standards of ISO with their benefits. Some of the benefits include customer satisfaction, global market acceptance, environmental impact, increased efficiency, reduced risk and waste etc.

Team 618 Bees

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

Crypto Currency Regulation in Nigeria

It is pertinent to understand what crypto currency is all about. Simply defined, crypto currency is the buy and selling of digital assets via exchanges. Examples of crypto currency is bitcoin, Ethereum, Litecoin etc. Crypto currency can be mined, farmed, sold or bought.

The cryptocurrency market is decentralized and the implication is that it is not governed by a centralized government but runs across streams of networks. Although, individual countries regulate the cryptocurrency market in their country, there is no law that regulates crypto currency in Nigeria but this does not in any way render the activities of cryptocurrency illegal.

In February, 2021 the Central Bank of Nigeria banned banks and other financial institutions from trading in crypto currency and enabling payment for crypto currency in Nigeria. This move has left the cryptocurrency market unregulated in Nigeria and by implication cryptocurrency is not an acceptable legal tender in Nigeria.

Although, Crypto currency itself has not been declared illegal, it is what the end user does with it that might amount to illegality.

Crypto currency is a digital asset that is different from the commonly used legal tender (Currency) and the way this by nature makes it hard to regulate.

In conclusion, it is imperative that the Financial regulatory bodies in Nigeria regulate the activities of crypto currency and declare it a legal tendency to accommodate the fast changing global market value.

Team 618 Bees

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

Crowdfunding in Nigeria: what does the law say about this?

Crowdfunding is when a large number of persons contribute a small amount of money for a project or investment. An Example of crowdfunding is GoFundme.

Crowdfunding is a legally acceptable means of raising money in Nigeria and it is regulated by the Securities and Exchange Commission (SEC). SEC amended its rules in 2021 to include regulation on crowdfunding, more particularly investment crowd funding and it defines the model as the raising of funds from the public through an online portal in exchange for shares, debt securities, or other investment instruments approved by the SEC.

Who is a fund raiser?

A Fund raiser is defined under the rules as a company seeking to raise capital through the issuance of investment instruments to members of the public through a crowdfunding portal.

SEC also stated the type of entities that are allowed to go into crowd funding in Nigeria;

  1. it must be a registered company incorporated in Nigeria;
  2. It must be an MSME Micro, small and Medium Enterprises; and
  • It must be in operation for 2 years or has a technical partner with over two years’ experience or a major investor.

Despite the above rules, certain companies are prohibited from running a crowdfund. This includes listed companies and their subsidiaries, companies deemed suspicious, companies with no clear-cut business plan or companies whose owners can not be easily ascertained.

There is also a minimum amount that can be raised in crowdfunding under the rules and it depends on the type of company. For instance, Micro companies cannot raise more than 50 million for 12months. This limit does not in any way affect Commodities Investment platforms (CIP).

The rules also protects a retail investor while an individual investor is allowed only to invest 10 percent of what he/she receives annually.

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

Procedure for registering a company limited by guarantee in Nigeria

A Company limited by guarantee is a company registered solely for promoting an objective and these kinds of companies are not profit based. Whatever money the company makes is used for the promotion of its objectives. They are usually registered to promote Art, culture, science, education, religion, e.t.c.

The Corporate Affairs Commission (CAC) is the agency responsible for the registration of a company limited by guarantee and the procedure for such registration is highlighted below;

  1. Application for consent for name reservation and registration of the company Limited by guarantee to the registrar of the Corporate Affairs Commission. The information required for this process includes, two proposed company name in order of preference, the objectives of the company, details of directors and secretary, Statement of Guarantee of the proposed Company limited by guarantee.
  2. Application to the Attorney General of the federation for authorization to register the company within 30days, the AG shall approve where there are no objections or where there is no reasonable cause to refuse the application, and where no decision is made within 30days, the promoters shall – Place an advertisement in 3 daily National Newspaper for 28days inviting the public to object if any.
  3. Conclusion of the registration process on the Company Registration Portal. (inclusive of document uploads).
  4. Approval by the commission.

 

618 Bees can help you quickly and easily help you register a company limited by guarantee in Nigeria. Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Corporate Affairs Commission (CAC).

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

The importance of having a Tenancy Agreement in Nigeria

A Tenancy Agreement is written agreement between a Landlord and his tenant which states the agreed terms and condition of the tenancy

The importance a Tenancy Agreement is as follows; 

  1. A tenancy agreement protects the right of both the Landlord and the tenant by streamlining agreed terms and conditions acceptable by both parties.
  2. A tenancy agreement clearly states the responsibilities of both parties. E.g where there is a major structural change to be done in the property, the landlord might step in.
  1. The Landlord has the power to determine the time in which he would put the tenant on notice to repossess his property if the tenant is in default of any of the agreement terms or where there is failure to pay rent as at when due. The law only takes effect where there is no written agreement and it depends on the provisions of the law.
  1. A tenancy agreement helps Protect a Tenant from unlawful eviction.
  1. In a Tenancy agreement, the mode in which the tenancy can be terminated would be properly defined. This could be by a written notice served personally, via email or pasted on the wall, or orally stated, etc.
  1. A tenancy agreement gives the Landlord the opportunity to state the way and manner in which he prefers the demised property to be used. For instance, a Landlord may prohibit the tenant from assigning, subletting or even lodging another person in the property or he might prohibit the property to be used for commercial purposes.
  1. A tenancy agreement states the consideration for the property(rent) thereby avoiding dispute as to the amount of rent for the property.
  1. Another importance, is that a tenancy agreement can protect the tenant from unnecessary increase in rent.
  1. The duration of the tenancy is another important term that can be covered by a tenancy agreement. The agreement helps to state when the tenancy takes effect and the expected date the tenancy is to elapse.
  1. The parties can jointly agree to what would amount to a breach of the agreement which can be a ground for dissolving the tenancy e.g Tenant A and the Landlord agreed that Tenant A must not conduct any illegal activity in the premises or and Tenant A was found with an illegal drug. The Landlord can on that ground terminate the Tenancy.

Finally, although we did not exhaust all the advantages of a tenancy agreement here but it is imperative to note that even where there is no tenancy agreement there are implied conditions as to tenancy. One of which includes right to peaceful possession and enjoyment. This is an implied condition by law enjoyed by a tenant even though some tenancy agreements may not state it.

Team 618 bees

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

Procedure for the renewal of a money lending license in Lagos State

The Money Lenders License granted in Lagos to lenders is only for a period of one year. Each License is usually valid until the 31stof December each year hence the lender has to renew their lenders license every January.

The procedure required to renew a lenders license in Lagos is almost similar with the procedure for obtaining a lenders license in the first instance. The steps to obtain a lenders license includes;

  1. Obtaining of Magistrate Court Form A and B
  2. Payment of the renewal fee of N100, 000 to the Lagos State Ministry of Home Affairs.
  3. Application for the renewal of Lenders license addressed to the permanent secretary of the Ministry of Home Affairs Lagos and submission of all necessary documents including a copy of the previous issued License.
  4. Inspection of the Lender’s office by the officers for the Ministry of Home Affairs.
  5. Verification of all documents tendered.

After the inspection, the application is reviewed by the Ministry and a renewal granted if the Ministry is satisfied that all the requirements have been fulfilled.

 

618 Bees can help you quickly and easily help you renew your Lending License with Lagos State, Nigeria. Log on to our website www.618bees.comor email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your application with the Lagos State Ministry of Home Affairs.

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

Why your Start-up Needs A Founder’s Agreement

It is important for a company’s founders to have an agreement among themselves even before creating an entity. Founders’ agreements are the product of conversations that should take place among a company’s founders at the early stages of formation rather than later in the life of a company. The goal of these conversations is to have an open and honest discussion about the attitudes, fears, and aspirations of individuals involved with the formation and development of an idea.

Founders’ agreements serve as the bedrock of a new business formation. They set the tone and lay the groundwork for how you interact and manage the business as a team. A Founders’ Agreement is a contract that a company’s founders enter into that governs their business relationships. The Agreement lays out the rights, responsibilities, liabilities, and obligations of each founder.

Generally speaking, it regulates matters that may not be covered by the company’s operating agreement, also known as the company’s Memorandum and Articles of Association (MEMART). Ultimately, Founders’ Agreements are designed to protect each founder’s interests and memorialize that all founders are in agreement about the company’s basic structure and how the founders will work together to move their business forward. Forging an agreement between all founders helps mitigate the risk of a lawsuit over who owns the business.

A founders’ agreement is drafted during the initial incorporation of the business and are essential to a well-planned business venture when involving more than one person. They are also attractive investing tools since they signal to investors that you are organized and methodical, even when bootstrapping.

A Founder’s Agreement can address a wide range of business start up issues and while it may be unnecessary to utilize a founders’ agreement, drafting one ensures everyone is on the same page regarding critical legal and financial issues associated with the business venture. It should identify potential complications and risks and provide provisions to deal with them should they arise. As a legally binding document, it must be detailed and lack any loopholes that may be exploited later. It is always a good idea to draft a written agreement after seeking an expert’s counsel regarding the business’s requirements and intentions.

Essentially, a Founders’ Agreement should incorporate the following:

  1. It properly defines the business:Its important that the Agreement describes your company’s venture and purpose in as much detail as possible. This will prevent ambiguities.
  2. It establishes ownership roles and responsibilities: Ownership will typically be distributed in shares or percentages of the company’s value.
  3. It offers guidelines for dispute resolution: It’s crucial to include procedures for resolving conflicts, as they are an inevitable part of any long-term business operation. Options include binding arbitration, mediation or other dispute resolution options.
  4. Its sets out the roles and responsibilities of the founders’: Assumptions about individual roles and responsibilities can be a significant source of conflict within a business. Do not shy away from thoroughly defining the parameters of each person’s role. These expectations can be as simple as one person running the business while the other person remains the silent partner.
  5. Provides rules surrounding the contract’s termination: A termination clause is essential as it sets out the procedure for ending the contract when it becomes necessary
  6. Assignment of Intellectual property (IP):Once your business develops a business plan or begins to expand on an idea or product, you have begun creating intellectual property.Designate what belongs to your company and how it will be used appropriately in order to protect your ideas. It is important to define how IP belongs to your company and not to individuals such as owners, employees, contractors, and consultants.
  7. Provides Terms for Confidentiality and Non-compete: As a founder, you are expected to have access to confidential information. The core team should trust each other. What if one of the founders decides to leave and share the critical confidential information with one of your competitors? Your agreement should have a binding time for any parting member. The parting members should not join competition, start a similar business, break away suppliers, vendors, employees, or clients.
  8. Shareholding Structure/Contributions: Be sure to include who contributed what to the company’s initial development. Remember that co-ownership does not necessarily mean equal ownership. It’s important to have that conversation at the very beginning of the company’s formation.Also, if members require payback due to contributions made at start up, include the specific details and method of reimbursement.
  9. Vesting Schedule and Milestones: Consider market vesting termsfor each founder’s equity in case they decide to split. This means that founders must contribute to building value in the company in order for their equity to grow. The Agreement should also detail important milestones that must be met and what work must be completed in order to reach them. You’ll be able to reference your achievements to know when to take the next step.

Startups are not meant to be one-person rides. You need people by your side who you can trust for skills, commitment, and persistence. A good startup team would consist of more than one founder with complementing skill-sets and domain expertise hence the need to put it all in an agreement from the start. However, you must understand that no paper work can define your mutual trust and respect for each other. Startups are tough bumpy rides and there would be a lot of challenges on the way. In case you are unable to trust each other at this stage, then it is the right time to part ways. But once you commit to something, it’s your obligation to give 100 percent, not just for the interest of each other, but for all stakeholders who trusted your vision.

Team 618 Bees

Sources:www.law.upenn.edu, www.contractscounsel.com, www.upcounsel.com, www.yourstory.com

 

618 Bees can help you quickly and easily help you register a draft a Founders’ Agreement . Log on to our website www.618bees.com or email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your registration with the Corporate Affairs Commission (CAC).

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.

Benefits of incorporating your business as a limited liability Company

 

What does it mean to incorporate a business?

It simply means a business has completed the process of becoming a corporation, as recognized by law. Incorporationprovides the owners with many advantages, and I have listed a few of the many benefits you enjoy when you make your business official;

  1. ASSET PROTECTON

When a business Is duly registered as a limited liability company, it is recognized under law as a separate legal entity separate from and apart from its owners. It is responsible for its liabilities and its debt thereby protecting its owners from personal liability and corporate debts.

  1. CORPORATE IDENTITY

In the eyes of the law, a registered company is a legal person. It can sue and be sued, it can buy property, contract and be taxed.

  1. PERPETUAL LIFE

Corporations are the most enduring legal business structures. The life of an incorporated company is not dependent on the life of a particular individual(s), manager, shareholder, director or officer. It can continue indefinitely until it accomplishes its objectives, merges with another business, or go bankrupt. This means that by incorporating your business, you may be able to avoid the legal entanglements that could result with other business structures. In other words, unless stated otherwise, an incorporated company could go on indefinitely.

  1. TRANSFERABILITY OF OWNERSHIP

When a business is incorporated, the ownership interest you have in it can be readily sold, transferred, or given away to another family member. The divesting process in proprietorships and partnerships can be costly and cumbersome as property has be retitled, new deeds drawn, and a whole lot of other administration processes have to be done to transfer ownership. This is not the case with incorporated businesses as all of the individual owners’ rights and privileges are represented by the shares they hold which can be easily transferred, sold or otherwise disposed off by completing/signing a transfer form. This is a very straight forward and easy process.

  1. ABILITY TO BUILD CREDIT AND RAISE CAPITAL

It is a lot easier for incorporated businesses to raise capital since a corporation can issue shares making it easier for the company to grow and develop. As an incorporated company, getting loans from the bank is a lot easier as banks would rather lend money to an incorporated business than an unincorporated business venture. This is because corporations generally have access to more alternative sources of capital through which they can pay off debts.

  1. ENHANCE YOUR BUSINESS CREDIBILITY

When a business is incorporated, the business is more likely to be viewed by customers, suppliers and other business associates as being more stable than unincorporated businesses. In a sense, the word “Limited” after the business name conveys permanence, credibility, and stability, and also communicates your commitment to the ongoing success of your business venture.

  1. GAIN ANONYMITY

If you want to run a small business and don’t want your involvement to be public knowledge, your best choice may be to incorporate a company. Incorporation can offer anonymity to its owners.

  1. TAX SAVINGS

As a separate legal entity, a corporation is taxed based on its profits. Those taxable profits can be reduced by qualified business expense which could include operating costs, marketing and advertising expenses, travel and entertainment expenses, and other costs. Other deductions that can be made by an incorporated business includes employee salaries, health benefits, and pension contributions.

 

618 Bees can help you quickly and easily help you register a Limited Liability Company in Nigeria. Log on to our website www.618bees.comor email hello@618bees.com, or give us a call on +2349017190079. 618 Bees will complete your registration with the Corporate Affairs Commission (CAC).

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer. This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached.