AN APPRAISAL OF THE POSITION OF PROMOTERS, PRE-INCORPORATION CONTRACTS AND COMPANY CONTRACTS UNDER NIGERIAN LAW

This paper appraised the position of promoters, pre-incorporation contracts and company contracts within the Nigerian legal framework. It examines the Critical role of promoters in the formation of companies, the legal implications of pre-incorporation contracts and the contractual obligations of the company after incorporation. Promoters Play a pivotal role in the formation of companies in Nigeria. They are the individuals or entities responsible for initiating the incorporation process, identifying the business opportunity and bringing together the necessary resources, including capital, expertise and personnel. Promoters are instrumental in drafting the company’s constitution, securing regulatory approvals, and laying the groundwork for the company’s operations. However, their actions and decisions during the pre-incorporation stage can have significant implications for the company’s future successes and the right and obligations of various stakeholders. Using doctrinal method of research, this paper appraises the legal framework surrounding promoters, pre-incorporation contracts, and companies contracts under Nigerian law. The paper finds that the Nature of pre-incorporation contracts, though bilateral, is different from ordinary Contracts, for it has the features of a tripartite contract. The paper recommended for more comprehensive and coherent legislation, as well as more regulatory oversight and enforcement mechanism.