Articles

THE LEGAL IMPLICATION OF THE USAGE OF “WITHOUT PREJUDICE” IN BUSINESS LETTERS VIZ-À-VIZ SETTLEMENT OF DISPUTES

BY: PAUL OMOBHUDE, ESQ.   CONTENT Introduction. Meaning of “without prejudice” rule Meaning of business letters Merits of business letters Comparative statutory provision of “without prejudice” rule in Nigeria, America and India Case law on modern day approach to the “without prejudice” rule The implication of the usage of “without prejudice” in business letters and…

NAVIGATING THE CURRENT PANDEMIC THROUGH TECHNOLOGY AND ARBITRATION IN THE FACE OF LAW

BY: IGECHI ICHEGBO, Esq.   INTRODUCTION The Corona Virus Pandemic has ushered a new normal into our everyday lives, which is the application of or dependence on technology as a vital instrument, in transacting business globally. We must ensure that parties to commercial contracts can have a proper and valid window, for the settlement of…

A CRITICAL ANALYSIS OF THE COMPANIES AND ALLIED MATTERS ACT 2020 -THE LATEST DEVELOPMENTS

BY: DAMILOLA BAMISILE, ESQ. The Companies and Allied Matters Act is the principal law regulating the formation, operation and dissolution of companies in Nigeria. Over the past 3 decades, companies have been regulated by the Companies and Allied Matters Act, 1990. However, on 7th August 2020, the President of Nigeria signed into law, the Companies…

CONTRACTUAL EFFECT OF ARTICLES OF ASSOCIATION OF A COMPANY – EFFECTS THEREOF

BY: PATRICK MGBEOMA, ESQ. INTRODUCTION It is trite that once a company is formed, the company begets its own legal personality which is different from its members or shareholders. This position was elucidated in the well-celebrated case of Salomon v. Salomon & Co (1897) AC 22. In Nigeria, the body that is responsible for the…

MERGERS & ACQUISITIONS: A STUDY OF ITS IMPACTS ON EMPLOYEES IN NIGERIA

BY: DAMILOLA BAMISILE, ESQ. Legend Plc and Magodna Plc are two medium-sized companies in the plastics manufacturing industry; the boards of both companies have decided to embark on a merger. Interestingly, both companies have robust finance departments and upon completion of the merger, the board soon realizes that there are duplicated roles and that they…

CONSUMER PROTECTION – THE LIABILITIES OF MANUFACTURERS

BY: PAUL OMOBHUDE, ESQ. Introduction As we all know consumers are the most vital part of every business, because without consumers all businesses will collapse and as such; we all owe our consumers a great deal of commitment. Consumers are usually not present during production hence, they are unable to make any input with regards…

PANDEMIC LOCKDOWN: EXPLORING THE OPTIONS AVAILABLE TO EMPLOYERS

By Paul Omobhude Esq. Introduction It is no longer news that the world is on lockdown which has paralysed both the economy and the entire labour force. This paper will address the options available to employers during the lockdown. It is no doubt that there are different employers in different sectors whose finances, resources, income…

Legal Consequences of “COVID-19” on Enforcement of Contracts Viz-A-Viz Corona Virus As A Force Majeure “An Act of God”

By Habeeb Adekola Esq., Associate Counsel, AAA Chambers INTRODUCTION There is no gain saying that the outbreak of Corona Virus (hereinafter referred to as COVID-19) has resulted in a standstill or at least a substantial breakdown of activities in virtually all aspects of life. While some have argued that the virus is a natural occurrence,…

A Critical Analysis of The Newly Enacted Finance Act

by Damilola Bamisile Esq., Associate Counsel, AAA Chambers  INTRODUCTION The Finance Act 2020 was signed into law by President Muhammadu Buhari on the 13th January 2020 as a review of tax laws to make them more responsive to reforms. It must be stated that there is in existence an Act known as the Finance (Control…

A Foreigner’s Guide to Doing Business in Nigeria

By Anuoluwapo Agboke, Media & Corporate Communications, AAA Chambers INTRODUCTION Globalisation which was once a tool for colonisation has metamorphosed over the years into what we recognise today as foreign investment. There comes a time in every business where the need to expand beyond the shores of one’s country is imminent. At one point or…

A Focus on Writ of Fieri Facias and Garnishee Proceedings

The end product of every litigation is a judgment which determines the right and obligations of the parties in respect of the cause of action subject to the right to appeal.

Enforcement of Foreign Judgments in Nigeria

By Harmony Eghwubare Esq., Associate Counsel, AAA Chambers INTRODUCTION We are in a time when the world has become a global village, as there has been an increase in foreign trade and investment. However, when there is a breach in trade/business contracts, the successful party should be able to enforce the judgment whether foreign or…

Practical Approach to Debt Recovery

By Paul Omobhude Esq. , Associate Counsel, AAA Chambers INTRODUCTION To maintain and grow a functional economy, investors often require loans which are made available by commercial banks and other financial institutions using its depositors’ funds upon security furnished for the repayment of such loans by the borrowing investors. As simple as the credit transaction…

The Revised AMCON Debt Recovery Approach Vis-a-vis The AMCON Special Powers – A Critical Review of AMCON Amendment Act 2019

Brief History of AMCON Asset Management Corporation of Nigeria (AMCON) was established on the 19th July 2010, when the President of the Federal Republic of Nigeria signed the AMCON Act No. 4, 2010 into Law on the same day. The AMCON Act was also amended in 2015 and known as the AMCON Amendment Act, 2015 precisely…

A General Overview of Corporate Restructuring in Nigeria

By Habeeb Adekola – AAA Chambers INTRODUCTION Corporate restructuring is a redesigning process that is practised all over the world. For a corporation to survive in Nigeria today, it must be possessed with sufficient drive for growth. This is because the competitiveness of the commercial landscape in Nigeria has made continuous development an inevitable phenomenon…

CORPORATE DRESSING AND PERSONAL GROOMING

Comparative Overview of Filing Procedures, General Defaults and Payment of Default Fees in the High Court of Lagos State {Civil Procedure} Rules, 2019

By Ayodeji Agunbiade, Litigation Officer – AAA Chambers Introduction On 31st January 2019, the new Civil Procedure Rules – THE HIGH COURT OF LAGOS STATE {CIVIL PROCEDURE} RULES, 2019, as one of the successful achievements of the former Chief Judge of Lagos State, Hon. Justice Opeyemi Oke, as he then was, came into force repealing…

Critical Analysis: Constitutional Doctrine of Covering the Field and Its Applicability in Our Nigerian Courts

By Patrick Mgbeoma, Senior Associate – AAA Chambers Doctrine of Covering the Field The principle of doctrine of covering the field is a constitutional law principle which is manifested specifically in a Federal System of government with particular respect to which legislating house possess the constitutional power to legislate on laws in that state. Nigeria…

Critical Analysis: Garnishee Proceedings vis-a-vis Jurisdiction And Execution

By Adeyemi Ogunremi, Legal Counsel – AAA Chambers An Analysis of the Case of Central Bank of Nigeria v. Interstellar Communications Ltd. & 3 Ors (2018) 7 NWLR Pt. 1618 @ Pg 294 Garnishee Proceeding Garnishee proceeding is a judicial process whereby a judgment creditor who is armed with the judgment of a Court may…

Critical Analysis: Winding Up As A Secondary Means of Debt Recovery in Nigeria vis-a-vis Last Option

In recent times, there has been an increase in the rate of non-repayment of debts by debtors (including individuals and companies) and creditors have been provided with numerous ways through which to recover the debts owed to them. Some of these means of recovering debt include ADR (Mediation, arbitration), Litigation, Bankruptcy Proceedings and Winding Up…

Critical Analysis of Evidential Presumptions and Its Implication on the Burden of Proof

By Paul Omobhude Esq., Associate Counsel – AAA Chambers Samson lives with Stacie, whom he often refers to as his wife. Together they have a son named Princewill who is just 6 years old. Their maid, Julia, has reported to the police that the couple’s son, Princewill, raped her when both his parents were out…

Critical Analysis: Mortgage As A Form of Securing Loan Transaction in Nigeria

By Patrick Mgbeoma Esq. , Senior Associate – AAA Chambers Mr Ken intends to obtain a loan facility from Titanium Bank but will have to use his house as collateral to obtain the loan, when Mr Ken exchanges the title document to his house with Titanium Bank, then a mortgage has been created between the…

Critical Analysis: The Doctrine of Subrogation and It’s Application in Nigeria

By Harmony Eghwubare Esq., Associate Counsel – AAA Chambers Madam Nora took a loan of N10,000,000 (Ten Million Naira) from her bank in June 2018 and was supposed to have finished repaying the loan by January 2019. However, she had been defaulting in her payment and her outstanding indebtedness became N18,000,000 (Eighteen Million Naira). To this effect,…

Critical Analysis: Arbitral Proceedings Viz-a- viz the Enforcement of Arbitral Awards in Nigerian Courts

By Patrick Mgbeoma Esq., Senior Associate – AAA Chambers Mike and Ted are best friends who intend entering a business relationship. In order not to cause a strain in their cordial relationship, they inserted an Arbitration clause in their contractual agreements to forestall a situation where any of them will have to approach the Court…

Critical Analysis: Honouring Bank Cheques Vis-a-vis Liabilities and Implications

By Adeyemi Ogunremi, Esq. Associate Counsel for AAA Chambers Mr Ken issued a cheque of N300,000.00 (Three Hundred Thousand Naira) to Mr David as payment for service rendered and upon presentation of the cheque at the bank by Mr David, the cheque was returned due to insufficient funds in Mr Ken’s account. Sequel to the ugly…

Deceased Debtors: An Analysis of a Creditor’s Recovery Options

Ms Nelly was advised to take a loan to start her business and to this effect, she recently got a loan of N5,000,000.00 (Five Million Naira) from her bank to be paid back within three years. Unfortunately, Ms Nelly died in the recent Ethiopian Airline plane crash and the bank has received the news of…

Mareva Injunction: An Appraisal of Its Meaning, Origin and Application In Nigeria

CASE SCENARIO Mrs Adeyemi advanced a loan of 200 million Naira to Mr Patrick, a Togolese residing in Nigeria. The loan was secured by Mr Patrick’s landed property located in Lagos. Mr Patrick failed to repay the loan, Miss Atinuke sued in the Lagos high court. During the pendency of the suit, Mr Patrick put…

Critical Analysis: Proceedings in Lieu of Demurrer, The Position of The Law and The Rules of Court Juxtaposed

Mr Obama has sued the Federal Inland Revenue Service (FIRS) at the Lagos State High Court, as a result of the restriction placed on his accounts with all the Banks. The Federal Inland Revenue Service (FIRS), rather than file a defence to the suit, has decided to file a Notice of Preliminary Objection challenging the…

Critical Analysis: Rights and Liabilities of Creditors in Secured Credit Transactions

Crystal Plc is a Bank registered in Nigeria to do the business of banking. The Bank was approached by Dann Holdings Ltd for a loan of N300,000,000.00 {Three Hundred Million Naira} to be paid back within 2 years and further executed a deed of legal mortgage covering the company’s property located at Victoria Island Lagos, worth N350,000,000.00 {Three Hundred and Fifty…