POWER OF CAC TO REFUSE REGISTRATION OF SHOOLS AS BUSINESS NAMES
O. G. Chukkol’s Mind
The Corporate Affairs Commission, CAC, has directed its officers to henceforth not approve schools, academies, and institutions of learning as business names.
From where did CAC derive such power? Is choice of business model now at the whims and caprice of CAC?
By law there are businesses that cannot be run unless such business is incorporated as a company. Such businesses include Banking, insurance, mortgage, and partnership consisting of persons exceeding 20 in number amongst others. School is not among such businesses.
For the avoidance of doubt, the laws below refer;
By section 2(1) of the BOFIA, "no person shall carry on any banking business in Nigeria except it is a company duly incorporated in Nigeria..."
Also, section 3 of the Insurance Act provides that "No person shall commence or carry on any class of insurance business in Nigeria except - a company duly incorporated as a limited liability company under the Companies and Allied Matters Act..."
Section 1 of the Mortgage Institution Act provides that "No mortgage business shall be transacted in Nigeria except by a company which is duly incorporated in Nigeria for that purpose..."
Also, section 19(1) of the Companies and Allied Matters Act says "No association, or partnership consisting of more than 20 persons shall be formed for the purpose of carrying on any business...unless it is registered as a company under this Act..."
In the light of the foregoing, what legal basis has CAC to refuse registration of a school as a business name? Is CAC's decision not ultravires? Which existing law prohibits registration of school as a business name?
To my mind so far as a school has complied with CAMA and all other relevant laws, CAC lacks the power to refuse registration of a school by reason only that the school seeks to register as a business name. See Lasisi V Registrar of Company {1974} 7 S.C. 73