STEP BY STEP GUIDE ON HOW TO REGISTER INCORPORATED TRUSTEE IN NIGERIA IN 2022
Incorporated Trustees are a non-profit organisation that does not conduct business and was created in accordance with Section 590 of the CAMA to assist groups of people who are connected by custom, religion, nationality, or any other type of association in acquiring corporate personality for such purposes. It is an organisation that can be registered with CAMA Part C.
Under Nigerian law, there are different corporate structures for different activities, and one such corporate structure is the Incorporated Trustee Association or Company limited by Guarantee which has become even more prominent in light of the Central Bank of Nigeria directive on freezing Bank accounts belonging to unregistered Non-profit /Non-Governmental organizations.
WHAT IS THE REGULATORY FRAMEWORK GOVERNING INCORPORATED TRUSTEE ASSOCIATIONS AND COMPANIES LIMITED BY GUARANTEE IN NIGERIA
For groups of people bound by a religious, familial, cultural or national affinity.
For charitable, sporting, educational, literary, religious or social development purposes. –
When you want to register a Non-Governmental Organization(NGO), a Non-profit organization, a Cultural Association, a Town Union, a landlord/tenant/resident association,a Foundation, a Social club, or a school(this can also be registered as a company limited by shares).
WHAT IS THE LEGAL STRUCTURE OF NGOS/INCORPORATED TRUSTEE ASSOCIATIONS
For all intents and purposes, Incorporated Trustees have a Legal personality with the following features:-
The capacity to own a common seal.
Juristic personality (they can sue & be sued).
Perpetual Succession by virtue of being bodies corporate i.e. they outlive their founders.
They can own assets such as land titles in their names.
WHAT IS THE DIFFERENCE BETWEEN AN INCORPORATED TRUSTEE ASSOCIATION AND A COMPANY LIMITED BY GUARANTEE (LTD/GTE)
Companies limited by Guarantee are companies with no share capital but guarantors in the form of its owners/founders while Incorporated Trustee Association are Corporate structures nominally embodied in its management group known as Trustees.
Companies of this nature can be for profit or non-profit purposes (social enterprises) unlike Incorporated Trustee Associations that are strictly non-profit organizations.
Guarantors in LTD/GTE companies are liable financially up to the ceilings of their guarantee amounts .
A guarantee is a fixed monetary sum pledge backed(guaranteed) by a guarantor during the formation of a Limited by Guarantee company.
Companies limited by Guarantee are also under much stricter registration and operation regulations than Incorporated Trustee associations as they are subject to the Consent of the Attorney-General of the Federation to be registered.
WHAT ARE THE REQUIREMENTS FOR SETTING UP AN INCORPORATED TRUSTEE ASSOCIATION
A registration application for an Incorporated Trustee organization apart from filling the Statutory will require the following :
the name & letterhead of the association
a constitution of the association
aims & objectives of the proposed Incorporated Trustee association
address of the association
names of the proposed trustees of the association (at least 2 or more)
the personal residential address of each of the trustees
occupations of each of the trustees
tenure of each of the trustees, the removal & filling of trustee vacancies
a list of the executive members of the association, including the president, auditors, secretary/treasurer etc
a copy of the required newspaper advertisement publications for the registration of the association
a copy of the minutes of meetings where the trustees were appointed
status of secretary (if he is also a trustee).
HOW LONG DOES IT TAKE TO PROCESS AN INCORPORATED TRUSTEE ASSOCIATION REGISTRATION APPLICATION
It takes an average of 35 working days to complete and process an Incorporated Trustee Association registration application.
NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com
WRITTEN BY CHAMAN LAW FIRM TEAM
EMAIL: chamanlawfirm@gmail.com
TEL: 08065553671, 08024230080