An Examination of the Legal and Institutional Frameworks for Company Investigation in Nigeria

Abstract

A company being an artificial person acts through natural persons whose mind and acts are attributable to the company. The directors of a company are the hands and feet of the company and sometimes commit irregularity or some offence in the management of the company. These legal infractions would have to be investigated before necessary action can be taken. This paper examined the Legal and Institutional Framework for company investigation in Nigeria and finds that the provisions of Companies and Allied Matters Act as regards investigation of companies are too rigid and burdensome to the courts. A doctrinal approach of research is adopted which includes desk and library research. The paper recommends a review of the Company and Allied Matters Act to incorporate the use of Alternative dispute mechanism in settlement of claims as opposed to the involvement of the regular courts in Nigeria owing to delay in litigating cases in court and its negative effects on foreign investment and economic growth. The Corporate Affairs Commission should commit to their mandate of ensuring compliance with the Act as regards registration of companies to winding up of same and not be saddled with the duty of appointment of inspectors to investigate a complaint. They should rather refer the matter to an appropriate agency.