THE ROLE OF COMPANY SECURITIES IN SECURED CREDIT TRANSACTIONS, A CALL FOR HARMONY IN REGULATION

Abstract

In order for businesses to strive, firms need to raise funds as capital to achieve their business objectives. Company and Allied Matters Act, 2020 being one of the enabling Laws regulating Companies, has set out various products as we can see in our discussions hereafter, through which companies can raise these funds. However, these products are further regulated by various other Laws which make raising of funds through them rather very cumbersome. One of the things this paper set out to achieve was to bring out the various forms permitted by our Laws through which business organizations can raise funds, the enabling Laws and then eliciting the procedures through which funds/capital can be raised through the any of the products. From its findings the paper found out that each of these products which are used in raising capital are further regulated by different laws, thereby making the procedures required of each product to be distinct from each other. This paper which is a call for the harmonization of these laws since the essence and the common denominator running through all these products is the raising of capital by firms. When therefore, there is uniformity of laws, it could be easy to simplify the process and that will allow businessmen raise capital easily. This will in turn rub off on the pricing of their end products and increase consumption which is very key to their developmental role in the society.