ONE PERSON COMPANY UNDER THE COMPANIES AND ALLIED MATTERS ACT 2020: A STEP IN WHICH DIRECTION?

Abstract

The Companies and Allied Matters Act (CAMA) 2020 has introduced groundbreaking reforms to Nigerian’s corporate legal landscape, including the recognition of One Person Company. Characterized by a single shareholder, director and member, One Person Company offers unparalleled flexibility and management simplicity, making it an attractive option for sole entrepreneurs and small business owners. Using doctrinal research methodology, this paper examined the One Person Company concept under CAMA 2020, exploring its features, benefits and challenges. Through a comprehensive analysis of the legal framework, this paper considered whether this innovation is a step forward or backward for Nigerian businesses and the economy. The findings revealed that One Person Company offers enhanced flexibility, simplicity and asset protection, but also present challenges, including the absence of a structured statutorily framework for One Person Company practice and procedure and a potential for abuse. To leverage the benefits of One Person Company, the researchers recommended the establishment of a comprehensive regulatory framework to govern One Person Company in Nigeria.