What is a company?

A company is a group of persons who have come together or who have contributed money for some common purpose and who have incorporated themselves into a distinct legal entity in the form of a company for that purpose.

The Nature of the Company

1. A company is the legal entity, i.e., has corporate personality.

2. Corporate personality is the fundamental principle or doctrine that goes to the root of company law that, a company being a legal person is entirely distinct from its members who formed it.

3 After being incorporate, a company becomes an independent legal entity vested with personality separate that of its shareholders.

4. The personality gives a company an artificial life, perpetual succession, the right to own and dispose of property and limited liability.

See, the case of Salomon vs Salomon [1897] A.C 22

Important Documents and Registration of Companies

• The organization that deals with the registration of companies is the BRELA.

• The important documents before registration at BRELA are Memorandum and Articles of Association (MEMATS).

NB: The are required to be acquainted with the formats of the MEMATS.