Understanding Basic Business Entity Formation Lingo In Nigeria

1.Shareholders

These are the owners of the company. They own shares in the company. They are also called members. To register a company in Nigeria, the law provides that a private company limited by shares must be owned by a minimum of 1 and a maximum of 50 people. Certain industries e.g Money lending are still required to have a 2 directors. A Person under 18 can only be a shareholder if there is another adult.

2. Directors

These are people who are in charge of the day to day running and management of the business. The law requires a minimum of 1 director in every company. Shareholders can double as Directors of the company. However, Directors do not necessarily have to be shareholders. This means you can involve that mentor of yours who can give