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5 COMMON COMPLIANCE MISTAKES SMALL BUSINESSES MAKE AND HOW TO AVOID THEM

Small businesses face unique challenges when it comes to regulatory compliance. They may not have dedicated compliance staff or the resources to navigate the complex web of regulations that apply to their industry. As a result, small businesses are more likely to make compliance mistakes that can result in hefty fines and legal problems. In this article, we’ll discuss five common compliance mistakes that small businesses make and offer tips on how to avoid them.

MISTAKE #1: NOT UNDERSTANDING REGULATORY REQUIREMENTS

Small businesses often lack the knowledge and expertise needed to understand the regulatory requirements that apply to their industry. This can lead to a failure to comply with rules that are critical to their business, such as safety regulations or data privacy laws. To avoid this mistake, small businesses should take the time to research and understand the regulations that apply to their industry. They can also seek guidance from industry associations, trade organizations, or regulatory compliance consultants.

MISTAKE #2: FAILING TO KEEP ACCURATE RECORDS

Small businesses may not have a system in place for keeping accurate records, which is a critical aspect of regulatory compliance. Regulations require businesses to maintain accurate records to prove compliance with rules and regulations. Failure to do so can result in hefty fines and legal problems. Small businesses should invest in a record-keeping system that tracks compliance activities and maintains documentation of compliance efforts.

MISTAKE #3: IGNORING EMPLOYEE TRAINING

Employees are often the first line of defense when it comes to compliance. If employees are not trained on regulatory requirements, they may unwittingly violate rules and regulations, resulting in compliance problems. Small businesses should invest in regular employee training programs to ensure that employees understand the regulations that apply to their job functions.

MISTAKE #4: FAILING TO CONDUCT REGULAR RISK ASSESSMENTS

Risk assessments are critical to identifying compliance risks and taking steps to mitigate them. Small businesses may not have a formal risk assessment process in place, which can lead to compliance problems. Small businesses should conduct regular risk assessments to identify potential compliance risks and develop strategies to mitigate them.

MISTAKE #5: NOT HAVING A COMPLIANCE PLAN

Small businesses may not have a formal compliance plan in place, which can lead to compliance problems. A compliance plan outlines the policies and procedures that a business will follow to comply with regulations. Small businesses should develop a compliance plan that outlines the steps they will take to comply with regulations, including record-keeping, employee training, risk assessments, and monitoring.

CONCLUSION:

Small businesses face unique challenges when it comes to regulatory compliance, but there are steps they can take to avoid common compliance mistakes. By investing in employee training, developing a compliance plan, conducting regular risk assessments, maintaining accurate records, and understanding regulatory requirements, small businesses can ensure compliance with regulations and avoid legal problems and fines.

Regville Associates offers end-to-end legal, secretarial, tax and compliance service for companies. Our services aid companies in achieving and sustaining compliance with regulations.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

MARCH 31ST DEADLINE APPROACHING: WHY FILING YOUR PERSONAL INCOME TAX RETURNS IN NIGERIA IS CRUCIAL TO AVOID PENALTIES AND CONSEQUENCES

In Nigeria, the Personal Income Tax Act requires all eligible individuals to file their personal income tax returns by March 31st of each year. The deadline is fast approaching, and it is important for individuals to understand the requirements and consequences of not meeting the deadline.

Personal income tax is a tax imposed on individuals’ income, including salaries, wages, profits, and other sources of income. Individuals’ resident in Nigeria are taxable on their worldwide income. The tax is a significant source of revenue for the government, and failure to file tax returns could result in penalties and fines.

The tax returns should include all sources of income, including salaries, wages, profits, dividends, rent, royalties, and any other income earned during the year. Deductions such as pension contributions, National Housing Fund (NHF) contributions, and National Health Insurance Scheme (NHIS) contributions can also be claimed.

The penalties for failing to file tax returns by the March 31st deadline can be severe. According to the Personal Income Tax Act, an individual who fails to file a tax return on time will be liable to pay a penalty of N5,000 for the first month and an additional N100 for every day during which the failure continues or imprisonment of six (6) months or both. Furthermore, the tax authorities can impose a penalty of up to 10% of the tax due on any undeclared income or understated tax liability.

It is important to note that individuals who fail to file their tax returns may also be barred from participating in government contracts or obtaining tax clearance certificates, which could impact their ability to conduct business.

To avoid the penalties and consequences of failing to file tax returns, individuals should take steps to ensure that they meet the March 31st deadline. This includes gathering all necessary documentation, such as pay slips and receipts, and consulting with a tax professional if necessary.

In conclusion, the March 31st deadline for filing personal income tax returns in Nigeria is a crucial date that should not be overlooked. Failure to file tax returns on time could result in significant penalties and consequences. Therefore, individuals should ensure that they meet the deadline and comply with the requirements of the Personal Income Tax Act.

N:B Employees who earn not more than the national minimum wage (currently NGN 30,000) are not liable to tax or deduction of monthly pay-as-you-earn (PAYE).

Regville Associates offers end-to-end legal, secretarial, tax and compliance service for companies. Our services aid companies in achieving and sustaining compliance with regulations.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

A Comprehensive Guide to Startup Funding Rounds

When it comes to starting a new business, one of the most important factors is securing funding. In the world of startups, there are several funding rounds that companies go through to raise capital. Each round is designed to help the company achieve certain goals, such as developing a prototype, expanding into new markets, or preparing for an IPO.

Pre-seed funding: This is the earliest stage of funding for startups. It typically involves friends and family, angel investors, or accelerator programs. Pre-seed funding may be used to develop a concept, build a prototype, or conduct market research.

Example: A startup with a new idea for a mobile app may raise $50,000 in pre-seed funding from an angel investor to develop a prototype and conduct market research.

Seed funding: This round of funding is used to help startups develop their products or services and start generating revenue. Seed funding may come from angel investors, venture capital firms, or crowdfunding platforms.

Example: A startup that has developed a prototype for a new software application may raise $500,000 in seed funding from a group of angel investors to further develop the product and start generating revenue.

Series A: This funding round is used to help startups expand their operations and reach a wider audience. Series A funding may come from venture capital firms or private equity investors.

Example: A startup that has developed a successful product and has generated revenue may raise $5 million in a Series A round from a group of venture capital firms to expand into new markets.

Series B and beyond: Once a startup has reached a certain level of success, it may continue to raise funds through additional funding rounds, such as Series B, C, D, E, and so on. These rounds are typically used to help the startup accelerate its growth, make acquisitions, or prepare for an IPO.

Example: A startup that has become a major player in its industry may raise $100 million in a Series C round from a group of venture capital firms, with the goal of expanding its operations and making strategic acquisitions.

In conclusion, startups can raise funds through different funding rounds to achieve various goals. From pre-seed funding to Series A, B, C, and beyond, each funding round helps startups raise the capital they need to succeed. By understanding the different funding rounds and their purposes, startups can plan their fundraising efforts better and achieve their growth objectives.

Regville Associates offers end-to-end legal, secretarial, tax and compliance service for companies. Our services aid companies in achieving and sustaining compliance with regulations.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

UNDERSTANDING THE IMPLICATIONS OF ‘SIGNED, SEALED, AND DELIVERED’: EXPLORING THE HISTORICAL AND MODERN USAGE OF A COMMON PHRASE.

“Signed, sealed, and delivered” is a common phrase that refers to the completion and finality of an agreement, contract, or legal document. While the phrase may suggest a physical act of sealing and delivering the document, it is often used more figuratively in modern times.

The phrase has its roots in a time when the use of a wax seal was a common way to ensure the authenticity of a document. The process involved the signer of the document applying a wax seal over the signature and any other marks on the paper. This seal indicated that the document was authentic and had not been tampered with. The document was then delivered to the intended recipient, often by hand, to complete the process.

Today, the phrase “signed, sealed, and delivered” is used to indicate that a legal document is final and binding. It suggests that all parties have agreed to the terms and have signed the document to make it official. While the document may not necessarily be physically sealed with wax, the phrase still implies that the document is complete and ready to be acted upon.

In a more general sense, the phrase can be used to indicate that any task or agreement has been completed and is now final. For example, a project may be “signed, sealed, and delivered” once all the necessary work has been completed and the final product has been delivered to the client.

It is important to note that while the phrase suggests a physical act of sealing and delivering the document, this is not always necessary in modern times. Many legal documents are now signed and delivered electronically, without the need for a physical seal or hand delivery. The phrase is used more to convey the idea of finality and completion than to suggest a specific physical act.

In conclusion, “signed, sealed, and delivered” is a phrase that indicates the completion and finality of a legal document, agreement, or task. While the phrase may suggest a physical act of sealing and delivering the document, it is often used more figuratively in modern times to convey the idea of finality and completion.

Regville Associates offers end-to-end legal, secretarial, tax and compliance service for companies. Our services aid companies in achieving and sustaining compliance with regulations.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

TRADEMARKING A NAME IN NIGERIA: EXAMPLES OF BRANDS WITH DISTINCTIVE TRADEMARKS FROM THEIR REGISTERED COMPANY NAMES

In Nigeria, businesses have the option to trademark a name other than their registered company name. This approach can help businesses build brand recognition and differentiate themselves in the market. To trademark a name, businesses need to conduct a trademark search to ensure that the name is available for registration and submit an application to the Nigerian Trademarks Registry. If the application is approved, the business will be granted a trademark for the name, giving them exclusive rights to use it in relation to the goods or services specified in the application. Here are five Nigerian businesses that have successfully trademarked a name different from their registered company name:

DOMINO’S PIZZA: The pizza chain is owned by Eat’N’Go Limited, which is registered as “Eat’N’Go Limited.” The name Domino’s Pizza is trademarked, which allows the company to use it exclusively for its pizza products.

CHICKEN REPUBLIC: The fast-food chain is owned by Food Concepts Plc, which is registered as “Food Concepts Plc,” but it operates under the brand name Chicken Republic. The name is trademarked, which allows the company to use it exclusively for its fast-food services.

SHOPRITE: The retail chain is registered as “Retail Supermarkets Nigeria Limited,” but it operates under the brand name Shoprite. The name is trademarked, which allows the company to use it exclusively for its retail services.

INDOMIE: The instant noodle brand is owned by Dufil Prima Foods, which is registered as “Dufil Prima Foods Plc.” The name Indomie is trademarked, which allows the company to use it exclusively for its instant noodle products.

GALA: The sausage roll brand is owned by UAC Foods Limited, which is registered as “UAC Foods Limited.” The name Gala is trademarked, which allows the company to use it exclusively for its sausage roll products.

By trademarking a name other than their registered company name, businesses in Nigeria can protect their intellectual property and build brand recognition. It’s important to conduct a thorough trademark search and follow all legal and compliance requirements for trademark registration to ensure the best chance of success. With the right approach, businesses can leverage the power of a strong brand name to gain a competitive advantage in the Nigerian market.

Regville Associates offers end-to-end legal, secretarial, tax and compliance service for companies. Our services aid companies in achieving and sustaining compliance with regulations.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

WHY STARTUPS FAIL: COMMON PITFALLS AND STRATEGIES FOR SUCCESS

Startups are often considered the backbone of innovation, creativity and growth in the business world. However, the journey of a startup is full of challenges and obstacles, and the odds of success are often stacked against them. According to statistics, over 90% of startups fail within their first year of operation. This alarming figure raises the question of why startups fail. In this article, we will explore some common reasons behind startup failure, citing examples and statistics to shed light on this important topic.

1. LACK OF MARKET DEMAND

One of the most common reasons behind startup failure is the lack of market demand for the product or service being offered. Startups often have a great idea that they believe will revolutionize the industry, but they fail to validate their assumptions and conduct market research to gauge customer demand. As a result, they end up investing time, money and resources into a product that nobody wants to buy. A classic example of this is Juicero, a startup that raised $120 million to develop a high-tech juice press that could only work with proprietary juice packets. However, the company failed to recognize that customers preferred to buy fresh juice from a grocery store instead of investing in an expensive machine and subscription service. Consequently, Juicero went bankrupt in 2017, just two years after its launch.

2. POOR CASH MANAGEMENT

Cash flow is the lifeblood of any business, and startups are no exception. Many startups fail because they underestimate the amount of money they need to keep the business running and fail to manage their cash flow effectively. This often leads to a situation where the startup runs out of cash before it can generate sufficient revenue to sustain itself. A prominent example of this is Webvan, a startup that aimed to revolutionize the grocery industry by delivering groceries directly to customers’ homes. Despite raising $1.2 billion in funding, the company failed to manage its cash flow effectively and went bankrupt in 2001, just two years after its launch.

3. LACK OF A SOLID BUSINESS MODEL

Another common reason for startup failure is the lack of a solid business model. A business model is a plan that outlines how a startup will generate revenue, create value for customers, and sustain itself in the long run. Many startups fail because they don’t have a clear understanding of how they will make money and how they will scale their business. A prime example of this is Color, a startup that aimed to disrupt the photo-sharing industry by creating a social network that allowed users to share photos and videos with their friends. Despite raising $41 million in funding, the company failed to monetize its platform and went bankrupt in 2013, just two years after its launch.

4. POOR TEAM DYNAMICS

The success of a startup depends not only on the idea but also on the team behind it. Many startups fail because of poor team dynamics, lack of experience, or simply because the team is not aligned with the vision and mission of the startup. A prime example of this is the story of Blippar, a startup that aimed to revolutionize the augmented reality industry. Despite raising $130 million in funding, the company failed to achieve its goals due to poor team dynamics and leadership issues. The company’s co-founders were in constant conflict, which led to a lack of focus and poor decision-making. As a result, the company went bankrupt in 2018, just seven years after its launch.

CONCLUSION

Startups are risky ventures that require a lot of hard work, dedication, and perseverance. While failure is a common outcome, it is important to learn from the mistakes of others and avoid making the same mistakes. In this article, we have explored some common reasons behind startup failure, citing examples and statistics to illustrate the importance of market research, cash management, business modeling, and team dynamics. By addressing these issues and taking a strategic approach to building a sustainable business, startups can increase their chances of success and achieve their goals.

In addition to the reasons mentioned above, there are many other factors that can contribute to startup failure, including regulatory challenges, legal issues, and macroeconomic factors. For example, the COVID-19 pandemic has had a significant impact on startups, with many struggling to survive due to the economic downturn and disrupted supply chains.

Despite these challenges, there are many success stories in the startup world, with companies like Airbnb, Uber, and Spotify revolutionizing their respective industries and achieving immense success. By understanding the factors that contribute to startup failure, entrepreneurs can take a proactive approach to building their businesses and increase their chances of success.

In conclusion, startups are an essential part of the business world, but they face many challenges and obstacles on the road to success. By learning from the mistakes of others, startups can avoid common pitfalls and build a sustainable business that creates value for customers and investors alike. With the right approach, dedication, and hard work, startups can achieve their goals and make a significant impact in their industry.

Regville Associates offers end-to-end legal, secretarial, tax and compliance service for companies. Our services aid companies in achieving and sustaining compliance with regulations.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

“THE POWER OF SILENT MOMENTS: WHY WORKING FROM HOME SHOULD BE EMBRACED BY COMPANIES”

The past decade has witnessed an exponential growth in remote work opportunities, thanks to advancements in technology and a changing work culture. Despite this, many companies have been slow to adopt remote work options and have instead stuck to traditional in-office work models. However, with the advent of the COVID-19 pandemic, remote work has become a necessity for many companies, and the benefits of working from home have become more apparent. This article will explore why working from home should be normalized by companies, with a particular focus on the advantages of silent moments for creativity and critical thinking.

One of the primary reasons why remote work should be normalized is the flexibility it offers. Working from home allows employees to structure their workday around their personal schedules and obligations. This can lead to increased productivity and job satisfaction, as employees are not forced to work within the confines of a traditional 9-to-5 schedule. Additionally, remote work can also help reduce commuting time and costs, making it a more sustainable and eco-friendly option for both employers and employees.

Another advantage of remote work is the reduced distraction level. In an office environment, employees are often subjected to various forms of distractions, such as noise, interruptions, and chatty coworkers. Such interruptions can be detrimental to productivity, creativity, and critical thinking. Conversely, when working from home, employees can create a quiet, focused work environment that enables them to concentrate on their work without distractions. This can lead to improved problem-solving skills, increased creativity, and better decision-making abilities, which are all crucial to the success of any business.

One of the most significant benefits of working from home is the opportunity for silent moments. In the hustle and bustle of the office environment, it can be difficult for employees to find quiet moments for critical thinking and reflection. However, when working from home, employees can take advantage of the peaceful environment to engage in deep thinking, strategizing, and brainstorming. Such silent moments can help employees explore new ideas, generate innovative solutions to problems, and develop new perspectives on old issues.

Moreover, remote work can also foster better work-life balance. With the ability to work from home, employees can prioritize their personal and family lives while still meeting work obligations. This can lead to reduced stress levels, better mental health, and improved overall well-being. Additionally, remote work can also provide more opportunities for personal development and learning, as employees have more time to pursue their interests and hobbies.

In conclusion, working from home should be normalized by companies as it offers numerous advantages, including increased flexibility, reduced distraction levels, improved productivity, and better work-life balance. Additionally, remote work can provide opportunities for critical thinking, creativity, and silent moments, which are essential for the success of any business. As we move forward into the future, it is essential that companies embrace remote work options and adapt to the changing work culture to remain competitive in today’s global marketplace.

Regville Associates offers end-to-end legal, secretarial, tax and compliance service for companies. Our services aid companies in achieving and sustaining compliance with regulations.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

CONTRACT MANUFACTURING: THE BENEFITS AND EXAMPLES OF COMPANIES EMBRACING OUTSOURCING FOR OPERATIONAL EFFICIENCY AND COST SAVINGS

Contract manufacturing has become increasingly popular in recent years as companies seek to streamline their operations, reduce costs, and take advantage of specialized expertise. In this article, we will explore what contract manufacturing is, why companies are embracing it, and provide examples and statistics to illustrate its impact.

WHAT IS CONTRACT MANUFACTURING?

Contract manufacturing is a business model where a company outsources the production of certain components or products to another company, known as a contract manufacturer. This means that the hiring company does not produce the goods themselves, but instead relies on the expertise and resources of the contract manufacturer to produce the goods on their behalf.

The contract manufacturer typically provides the necessary production facilities, equipment, and labor to produce the product according to the hiring company’s specifications. This can include everything from product design and engineering to materials sourcing, manufacturing, quality control, and shipping.

WHY COMPANIES ARE EMBRACING CONTRACT MANUFACTURING

There are several reasons why companies may choose to embrace contract manufacturing:

1. COST SAVINGS: Contract manufacturing can be more cost-effective than in-house production, as the contract manufacturer may have lower labor costs or economies of scale in purchasing materials or using specialized equipment. A report by Technavio found that contract manufacturing can help companies achieve cost savings of up to 25%.

2. EXPERTISE: Contract manufacturers may have specialized knowledge or skills that the hiring company does not possess, such as in the production of complex electronic components or specialized chemicals. This can help companies improve the quality of their products and stay competitive in their markets.

3. FLEXIBILITY: Contract manufacturing allows the hiring company to quickly and easily adjust production levels without the need for significant investment in new equipment or facilities. This can be particularly valuable for companies that experience fluctuations in demand or have seasonal products.

4. RISK MITIGATION: Contract manufacturing can help companies reduce their risk by outsourcing certain production processes to specialized manufacturers with experience in managing quality, compliance, and supply chain risks. This can help companies ensure that their products meet regulatory requirements and are produced to the highest standards.

EXAMPLES OF COMPANIES EMBRACING CONTRACT MANUFACTURING

Many well-known companies have embraced contract manufacturing to achieve their business goals. Here are a few examples:

1. Apple: Apple contracts with manufacturers such as Foxconn and Pegatron to produce their iPhones, iPads, and other devices. This allows Apple to take advantage of the specialized expertise and resources of these manufacturers to produce high-quality products at scale.

2. Nike: Nike uses contract manufacturers to produce its footwear and apparel products. This allows Nike to focus on its core competencies of design and marketing, while relying on the expertise of its manufacturing partners to produce its products.

3. Procter & Gamble: Procter & Gamble has used contract manufacturing for many years to produce its consumer goods products, including detergents, soaps, and personal care products. This has allowed the company to take advantage of cost savings and operational efficiencies while ensuring high-quality products for its customers.

STATISTICS ON CONTRACT MANUFACTURING

The global contract manufacturing market is expected to reach $395.4 billion by 2025, growing at a CAGR of 8.8% from 2020 to 2025, according to a report by Mordor Intelligence. The report cites factors such as cost savings, expertise, and flexibility as key drivers of growth in the contract manufacturing market.

Another report by Technavio found that the contract manufacturing market in the Americas is expected to grow at a CAGR of over 9% during the period 2020-2024. The report cites factors such as cost savings, expertise, and risk mitigation as key drivers of growth in the contract manufacturing market in the region.

CONCLUSION

In conclusion, contract manufacturing is a popular business model that allows companies to take advantage of specialized expertise and resources to produce high-quality products at scale. With cost savings

Regville Associates offers end-to-end legal, secretarial, tax and compliance service for companies. Our services aid companies in achieving and sustaining compliance with regulations.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

ENSURING SHAREHOLDER PROTECTION: THE IMPORTANCE OF A WELL-DRAFTED SHAREHOLDERS AGREEMENT

A shareholders agreement is a legal document that outlines the rights and responsibilities of the shareholders of a company. It serves as a contract between the shareholders, and it is designed to protect their interests in the company. The agreement can cover various issues, including ownership rights, management control, decision-making, dispute resolution, and exit strategies. This article provides an overview of the importance of a shareholders agreement, what it should contain, what it shouldn’t, and some examples of clauses.

IMPORTANCE OF A SHAREHOLDERS AGREEMENT

A shareholders agreement is crucial in protecting the interests of shareholders in a company. It clarifies the rights and obligations of shareholders and helps to prevent disputes and disagreements. It also provides a clear framework for decision-making, management control, and ownership rights, which helps to avoid misunderstandings and conflicts. A well-drafted shareholders agreement can be beneficial in several ways, including:

1. PROVIDING CLARITY ON OWNERSHIP AND MANAGEMENT CONTROL: A shareholders agreement outlines the ownership structure of the company and the rights and obligations of each shareholder. It also outlines the roles and responsibilities of the management team and helps to prevent disputes and misunderstandings about management control.

2. PROTECTING SHAREHOLDER INTERESTS: A shareholders agreement provides protection for minority shareholders, ensuring that they are not unfairly treated by majority shareholders. It also sets out the rights of shareholders in the event of a company sale or liquidation.

3. SETTING OUT DECISION-MAKING PROCESSES: A shareholders agreement outlines the decision-making process for significant company decisions, such as mergers and acquisitions, and helps to avoid disputes over these issues.

4. RESOLVING DISPUTES: A shareholders agreement can provide a clear framework for dispute resolution, which can help to avoid expensive legal battles and preserve the relationships between shareholders.

WHAT A SHAREHOLDERS AGREEMENT SHOULD CONTAIN

A shareholders agreement should be tailored to the specific needs of the company and its shareholders. However, there are some key provisions that most agreements should include:

1. SHAREHOLDERS’ RIGHTS AND OBLIGATIONS: This section should outline the rights and obligations of each shareholder, including voting rights, dividend entitlements, and the transfer of shares.

2. MANAGEMENT AND CONTROL: This section should outline the management structure of the company, including the roles and responsibilities of directors and officers.

3. DECISION-MAKING: This section should outline the decision-making process for significant company decisions, including mergers and acquisitions.

4. DISPUTE RESOLUTION: This section should outline the dispute resolution process for any disputes between shareholders.

5. EXIT STRATEGIES: This section should outline the process for a shareholder to sell their shares, including any restrictions on the sale of shares.

WHAT A SHAREHOLDERS AGREEMENT SHOULDN’T CONTAIN

A shareholders agreement should not contain any provisions that are illegal, contrary to public policy, or discriminatory. Additionally, it should not contain provisions that give one shareholder an unfair advantage over others, or that limit the ability of minority shareholders to exercise their rights.

EXAMPLES OF SHAREHOLDERS AGREEMENT CLAUSES

Here are some examples of common clauses that may be included in a shareholders agreement:

1. DRAG-ALONG RIGHTS: This clause allows the majority shareholders to require minority shareholders to sell their shares in the event of a company sale.

2. TAG-ALONG RIGHTS: This clause allows minority shareholders to sell their shares along with the majority shareholders in the event of a company sale.

3. RIGHT OF FIRST REFUSAL: This clause gives existing shareholders the right to purchase any shares that another shareholder intends to sell.

4. NON-COMPETE CLAUSE: This clause prevents shareholders from starting or participating in a competing business while they are shareholders in the company.

5. DEADLOCK RESOLUTION CLAUSE: This clause outlines the process for resolving a deadlock between shareholders on a significant company decision.

CONCLUSION

A shareholders agreement is an essential document for any company with multiple shareholders. It provides clarity on ownership and management control, protects the interests of shareholders, and outlines the decision-making process for significant company decisions. A well-drafted shareholders agreement can help to prevent disputes and misunderstandings, and provide a clear framework for dispute resolution.

When drafting a shareholders agreement, it is essential to ensure that it is tailored to the specific needs of the company and its shareholders. The agreement should contain key provisions, including shareholders’ rights and obligations, management and control, decision-making, dispute resolution, and exit strategies. However, it should not contain any provisions that are illegal, contrary to public policy, or discriminatory.

Finally, it is essential to seek the advice of legal professionals when drafting a shareholders agreement. They can help to ensure that the agreement is legally binding, enforceable, and protects the interests of all shareholders. With a well-drafted shareholders agreement in place, shareholders can feel secure in their ownership rights and confident in their ability to manage the company effectively.

Regville Associates offers end-to-end legal, secretarial, tax and compliance service for companies. We assist Companies in becoming and staying regulatory compliant.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667

ENSURING COMPLIANCE: A STEP-BY-STEP GUIDE ON HOW TO CHECK IF YOUR COMPANY IS ACTIVE OR INACTIVE ON CAC NIGERIA AND WHAT TO DO NEXT

The Corporate Affairs Commission (CAC) is the regulatory body responsible for the registration and regulation of companies in Nigeria. It is essential to know if your company is active or inactive on CAC Nigeria as it determines the legal status of your business. In this article, we will guide you on how to check if your company is active or inactive on CAC Nigeria and what to do next.

STEP 1: Visit the CAC Nigeria Website

The first step to check the status of your company is to visit the CAC Nigeria website, www.cac.gov.ng. The website is user-friendly and easy to navigate. On the homepage, you will see a tab that says “Public Search”. Click on it to proceed.

STEP 2: Enter Company Name

Once you have clicked on “Public Search”, you will be redirected to a new page. On this page, you will see a search bar where you can enter the name of your company. It is important to note that you must enter the exact name of your company as it is registered with CAC Nigeria.

STEP 3: Review Search Results

After entering your company name, click on the “Search” button. The website will display a list of companies that match the name you entered. Review the search results to locate your company.

STEP 4: Check Company Status

When you have located your company, check the status column to see if it is active or inactive. If your company is active, it means that it is currently in good standing with CAC Nigeria, and all necessary filings and fees have been paid. On the other hand, if your company is inactive, it means that it is no longer in good standing with CAC Nigeria. This may be due to the non-payment of annual fees or non-compliance with regulatory requirements.

What to Do Next If your company is active, congratulations! You are compliant with all CAC Nigeria regulations, and your business is in good standing. However, if your company is inactive, there are a few steps you should take to remedy the situation.

STEP 1: Determine the Reason for Inactivity

The first step is to determine the reason for your company’s inactivity. This may be due to non-payment of annual fees, non-filing of annual returns, or non-compliance with regulatory requirements.

STEP 2: Address the Issue

Once you have determined the reason for your company’s inactivity, take steps to address the issue. For example, if your company is inactive due to non-payment of annual fees, make the necessary payments to bring your account up to date. If your company is inactive due to non-filing of annual returns, submit the necessary documentation to CAC Nigeria.

STEP 3: Seek Professional Assistance

If you are unsure about how to address the issue, seek professional assistance from a lawyer or accountant. They can guide you through the process and ensure that you are in compliance with all CAC Nigeria regulations.

Conclusion

In conclusion, it is essential to check if your company is active or inactive on CAC Nigeria to ensure that your business is in good standing with the regulatory body. By following the steps outlined in this article, you can easily check your company’s status and take the necessary steps to address any issues. Remember, compliance with CAC Nigeria regulations is essential for the success and longevity of your business.

Regville Associates offers end-to-end legal, tax and compliance service for companies. We assist Companies in becoming and staying regulatory compliant.

Feel free to contact us.

Tolulope Oguntade 
Regville Associates 
info@regville.com 
08065111667