INADEQUACIES IN THE LEGAL FRAMEWORK REGULATING INCORPORATED TRUSTEES IN NIGERIA

Abstract

The sweeping reforms enshrined in the amended CAMA, 2020 have been widely applauded on the premise that it will undoubtedly accelerate economic growth and rapidly promote the ease of doing business in Nigeria. Though this new legislation has been touted due to the many reforms that will boost the ease of doing business in Nigeria, however, many people have heavily condemned some provisions in this extant Act, especially Part F that deals with operations of Incorporated Trustees and in fact have continued to question the adequacy of the legal framework regulating incorporated trustees in Nigeria. This paper which adopted the doctrinal research methodology analyzed the existing legal framework regulating Incorporated Trustees in Nigeria in order to determine the adequacy of its provisions. The paper found out that there are a number of inadequacies in the law in relation to Incorporated Trustees in Nigeria. The inadequacies revolve around the lack of clarity as to what amounts to misconduct or mismanagement. It was also the finding of this paper that while the Act made provision for the appointment of interim managers, it made no attempt to specify the qualifications and the procedure for such appointment by the Corporate Affairs Commission to avoid appointing one who may not have anything in common with the association to manage the affairs of the association. The writer recommended among other things that the issues of Incorporated Trustees should be completely expunged from the CAMA 2020 and place in a distinct legislation that will address the full range of issues affecting Incorporated Trustees in Nigeria. Also, an independent body different from Corporate Affairs Commission should be established for the regulation of Incorporated Trustees in Nigeria because Corporate Affairs Commission as an enforcement mechanism is inadequate having been entrusted with the enforcement of the provisions of the CAMA 2020.