Companies And Allied Matters Act 1990 Relating To Formation of Companies - SS2 Accounting Lesson Note

The Companies and Allied Matters Act 1990 is a law that governs the formation and management of companies in Nigeria. In simple terms, the act provides rules and regulations that companies must follow in order to be legally registered and operate in Nigeria. 

Under the act, a company can be formed by at least two people who agree to come together and contribute resources (such as money, property or skills) for a common business purpose. These individuals must agree on the company's name, share capital, shareholding structure, and other important details that will govern the company's operations.

The act requires that companies must be registered with the Corporate Affairs Commission (CAC) in Nigeria in order to operate legally. The registration process involves submitting several documents, including a memorandum and articles of association, and paying a registration fee.

Once a company is registered, it must follow certain rules and regulations regarding its operations. For example, the company must keep proper books of accounts, hold regular meetings with shareholders, and file annual returns with the CAC. The act also provides for the duties and responsibilities of directors, auditors and other officers of the company.