MEANING OF A COMPANY

 

Technically, it is a cumbersome task to undertake to define what a company is, this is because there are different definitions applicable to what a company is. We may attribute this difficulty to the fact that the study of company law is technical, this is because jurists are unsettled on what the definition of company should be. Notwithstanding this permutation, we may attempt to define a company as the association of two or more persons where for the purpose of making profit or advance their economy come together to do business. This working definition affords us a problem which we must give cursory attention to; this definition which the writer gives may be inconsistent with the provisions of the Companies and Allied Matters Act 2020 in respect of what a company is; in respect of how many people may form an association and whether this association is solely for profit making. This is because in section 18(2) of the Act, a person may form a company i.e. this association may in certain circumstance be an association of one person. Also when we look at companies limited by guarantee and Incorporated Trustees, these are companies incorporated under the Act not for profit making, but incorporated and run in a manner prescribed by law.

In fact the Act instead of putting to rest the controversies pertaining to the definition of a company creates more problems. The Interpretation Section - section 567 of the Act defines a company or existing company to mean a company formed and registered under this Act or as the case may be formed and registered in Nigeria before and in the existence of the Act.