The Machinery For Raising Capital By Companies Through Debt Finances In Nigeria
Keywords:
Machinery, Capital, Companies, Debt finance, RasingAbstract
This study aimed at examining critically the legal machinery for creating debenture by companies, rights of the debentures holders and methods of enforcement of the debenture in Nigeria. The machinery for raising capital through debenture is not well articulated in the Companies and Allied Matters Act (CAMA) 1990. The position of the law on the rights and duties of the parties to a floating charge is inadequate and reforms are urgently required as current edition of the law allows for fraud on unwary parties. This study’s submission was that the law be reviewed in such a way that many loopholes like the ninety day rule in Nigeria is changed, either reduced or changed to one of immediate notification of such transaction to the commission, to ensure some level of certainty in this area of the law.
References
Paul L. Davies, Gower and Davies, Principles of Modern Company Law, 7th ed. Sweet and Maxwell
p. 806
Section 114 of Companies and Allied Matters Act 1990 (CAMA), see also Burland Trustee v Steel
(1901) 1 Ch. 279 at 288
Section 130 CAMA 1990
Section 159, and section 160 CAMA 1990
Section 379 and section 380 CAMA 1990
Section 437 CAMA 1990
Cap. Laws of the Federation of Nigeria 2004
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Jelili Omotola, The Law of Secured Credit, Evans Brothers Nigeria Publishers Ltd, 2006 p. 165
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Section 169(2) CAMA 1990
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Section 193 CAMA 1990
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Section 191 CAMA 1990
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Section 193(2)
Section 171 CAMA 1990
Section 172 CAMA 1990
Section 173 (2) CAMA 1990
Section 173 (3) CAMA 1990
Section 174 CAMA 1990
Section 175 CAMA 1990
Section 183(1) CAMA 1990
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Priorities will be considered below
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The event known as crystallization
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Evans v Rival Grounds Quarries (1910) 2 KB at 994
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Section 191(2) CAMA 1990
Section 192 CAMA 1990
Section 192 (2) CAMA 1990
Section 195 CAMA 1990
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Section 193 CAMA 1990
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Re Bright Life Ltd (1981) Ch. 200
