THE EFFICACY OF PROMISSORY NOTES
Promissory Notes are credit instruments typically used in connection with sales financing and debt fi-nance. Although the legal parameters of promissory notes developed in common law, they have been statutorily regulated for some time and are governed by the Bills of Exchange Act (“the Act”)1.
Notwithstanding its longevity in our statute books, it appears that its usefulness as a financial instrument both from a creditor, as well as a debtor’s perspective has gone largely unnoticed. This is despite the fact that it can serve as a veritable instrument for raising debt finance by individuals and corporate entities, as well as a source of investment income for investors with an above average risk appetite.
This article analyses Promissory Notes and gives a brief outline of its key features, as well as regulatory considerations.Download PDF
THE MICRO PENSION PLAN – THE “INFORMAL SECTOR” MAY NOW BE ABLE TO CONTRIBUTE TOWARDS THEIR PENSION
The Pension Reform Act (PRA) 2014, in order to establish the rules, standards, and regulations for the provision of retirement benefits to private and public employees, created the Contributory Pension Scheme (“the Scheme”).
However, the applicability of the Scheme is limited to employees in the public sector and persons in the employment of private organizations with 15 (fifteen) or more employees.
Although Section 2(3) of the PRA 2014 makes self -employed persons and employees in an organization with less than 3 (three) employees entitled to participate in the Scheme, it notably subjects their participation to the provisions of “guidelines” issued by the National Pension Commission (“the Commission”) on same.Download PDF
YOU MAY BE ABLE TO OBTAIN JUDGMENT FOR A DEBT IN 60 DAYS!!!
It is trite that debt is an integral part of the engine that drives an economy. However, it is not uncommon in this part of the world to find that people are generally unwilling to transact businesses on credit or on the basis of deferred payment. This may not be unconnected with personal or shared experiences with respect to the lengthy and cumbersome process of debt recoveries, particularly in the Nigerian Courts.
In a bid to provide easy access to an informal, cost-effective and speedy resolution of simple debt recovery disputes, the Chief Judge of Lagos State, Hon. Justice Opeyemi O. Oke, in exercise of her powers on April 23, 2018, commissioned the “Small Claims Courts” and issued Practice Directions to, amongst other things, regulate the procedures of the said Courts.Download PDF
A CRITICAL EVALUATION OF THE CREDIT REPORTING ACT 2017 – PRACTICAL ISSUES ARISING
The Credit Reporting Act (“the Act”) was enacted on the 30th day of May 2017 with the primary objectives of promoting access to credit information and enhancing risk management in credit transactions. To achieve these, the Act provides for the licensing and regulation of Credit Bureaux on one hand, and stipulates the various processes to facilitate the creation, maintenance and sharing of credit information amongst key players on the other hand.Download PDF
WHEN ONE HEAD IS BETTER THAN TWO – REVISITING THE MINIMUM NUMBER OF SHAREHOLDERS AND DIRECTORS OF A LIMITED LIABILITY COMPANY UNDER NIGERIAN LAW’
The article argues that it is time to consider a reduction in the statutorily prescribed minimum number of directors and shareholders of a private company from two to one in line with modern trends.Download PDF