THE OBJECT CLAUSE: THE POWER BASE OF CORPORATE ENTITIES IN NIGERIA. A RESEARCH PROJECT MATERIAL ON ACCOUNTING
Dating back to the oil boom period, one recalls on the sudden and amazing expansion of our domestic markets with high demands for various products. Particularly immediately after the civil war, Nigeria economy has provided an investment climate in the country.The need to pull resources together became an impetus among Nigerians. As a result, many companies have been formed and the existing ones expanded. Thus many Nigeria business have come to appreciate investment in stock and shareAs regards the above development the Nigeria government started passing legislation to assist Nigeria businessmen in forming limited liability companies. The first of such legislation was the companies Act 1968, and indigenisation Decree 1972 amended 1989 which were all aimed at assisting Nigerians to own or have controlling shares in companies thereby meeting their aspirations. Currently, the privatization and commercialization of public companies across the country makes the existing laws inadequate. This is the reason behind why the federal government has gone further in promulgating the companies and Allied matter Decree No.1 of 1990.This decree serves as the main instrument which regulates the formation and control of companies in the country today.However, in the course of this project work much reference has been made of the companies Decree 1990. at the earlier stage of this write-up, the word “company” was described, its from of existence and the basic documents of the company was described.
The project work has also dealt with the consequence of incorporate entities in Nigeria, viz- a –viz-ultra – vires doctrine. This being the crux of the project work, the writer tried to include various statutory provision especially section 39 (1) CAMD 1990 and judicial authorities as a testimony on how the object clause is the substrata of corporate entities in Nigeria.However, the project work has been designed mainly in fulfillment for award of the Higher National Diploma in Accounting, it is therefore the hope of the researcher that work would be useful to all and sundry.
No economy in the world over can exist in isolation of various business activities. These business sectors ranges from sole proprietorship, partnership and public companies. But for the purpose of this research work, we are concentrating on the incorporated companies that is, limited liabilities companies. At this point, what really comes to mind is, what is a company and for what purpose do a company exist and who are those that form a company. These are very important question that is calling for answer
Akubuilo and Okey defined a company as an association of persons who have come together either for the purpose of doing business or otherwise and who are formed under a name with rights and liabilities.
Ignatius Agua define it as an association of a number of persons carrying on business for the purpose of a monetary gain, although, there are other companies that are deliberately non – profit making. The latter are usually formed for social charitable or gives – charitable purpose.