Forming a group of companies under the Companies and Allied Matters Act 2020 (CAMA 2020) in Nigeria involves a series of legal and administrative steps.
Some of the steps include;
1. Determine the Structure: Decide on the structure and composition of the group of companies. A group typically consists of a parent company and one or more subsidiary companies.
2. Company Registration: Register each company within the group as a separate legal entity with the Corporate Affairs Commission (CAC) in accordance with the provisions of CAMA 2020. Each company must have its unique name, memorandum, and articles of association, and the required registration documents.
3. Inter-Company Agreements: Draft and execute inter-company agreements among the group members. These agreements govern the relationships between the parent company and its subsidiaries, outlining matters such as management, control, financial transactions, and intellectual property.
4. Corporate Governance: Establish a system of corporate governance that includes the appointment of directors, defining their roles and responsibilities, and ensuring compliance with corporate laws and regulations.
5. Compliance Considerations: Take into account the legal requirements for forming a group of companies, including tax implications, tax planning, and corporate governance.
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