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.