If a public company or a company limited by guarantee carries on business or its objects, without having at least two members and does so for more than six months, every director or officer of the company, during the time that it so carries on business with only one or no member, is liable jointly and severally with the company for the debts of the company contracted during that period.
Companies and Allied Matters Act 2020 · Part B · Chapter 6
Section 118Liability for company debts where membership is below legal minimum
Cite as: Companies and Allied Matters Act 2020, section 118
What this section means
From the guide: Members of a company and the register of members under CAMA 2020
- If a public company or a company limited by guarantee carries on business for more than six months with fewer than two members, every director or officer during that time is jointly and severally liable with the company for debts contracted in that period (section 118).
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Source: Companies and Allied Matters Act 2020 (Act No. 3 of 2020), Official Gazette No. 124, Lagos, 10 August 2020. General information, not legal advice.