THE EFFECT OF SECTION 11 BOFIA ON THE RECTIFICATION OF THE REGISTER OF MEMBERS- A NIGERIAN COMPANY LAW PERSPECTIVE

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Abstract

The law requires the company to keep a register which records information about members of the company and their shareholding. In the keeping of the register, errors are bound to occur and sometimes disputes could result from those records. The courts are given broad power under the companies statute to rectify the register, but the exercise of that power is now restricted in Nigeria by section 11 of the Banks and other Financial Institutions Act of 1991 (BOFIA) in relation to banks. Two superior courts in Nigeria in two different cases respectively interpreted section 11 of the BOFIA and pronounced on its relationship with the Companies Act arriving at conflicting decisions which are bound to lead to further confusion and injustice in some cases as the courts continue to abide by the rules of precedents. The paper examines those decisions of the courts in the context of the statutory provisions interpreted and applied in those cases with a view to straightening the legal position as would make those decisions more acceptable and reliable as guides to future developments of the law.

Keywords: BOFIA, Court, Shareholders

How to cite this paper: Nwafor, A. O. (2014). The effect of section 11 BOFIA on the rectification of the register of members - a Nigerian company law perspective. Corporate Ownership & Control, 12(1-1), 203-210. https://doi.org/10.22495/cocv12i1c1p5