Carrying out a company search is one of the ways to discover whether or not a company exists and also run a due diligence on the company. In Nigeria, company search is done at the Corporate Affairs Commission (CAC) which incorporates and maintains records of all registered companies in Nigeria. In this regard, any search to be carried out on a company must be done at the CAC.
Essentially, there are two methods a search is done. Usually this is determined by the purpose of the search. For a quick search to determine the existence or non existence of the company, a public search done at CAC public portal will suffice.
The other kind of search which reveals more information about the company is manual search. Now let’s look at the searches again.
This kind of search reveals whether or not the company exists, and where the company is displayed, it shows the name of the company, date of registration and registered number. It’s a quickie search.
The manual search involves pulling out the file of the company off the shelve at CAC and allow the applicant for the search to conduct a thorough physical search on the company file. Manual search is only done at CAC office and it’s the best kind of search due to details of the results that are pulled out. The search could detect whether or not the company was registered, the address of the company, shares, the names of shareholders and directors and more. It gives the applicant access to the entire documents of the company to inspect.
So when is company search required?
Numerous reasons abound for company search but we shall list a few.
✓ where you are dealing or contracting with a company, you conduct search to know if the company is truly an existing entity,
✓ to discover if those you sign any agreement with are officers of the company as recognised by CAMA,
✓ to know whether or not the company has capacity to go into the kind of contract you wish to enter with it
✓ to discover if the company has any registered charge, debentures, mortgage and whether or not it’s defaulting in any way,
Before you buy any land or enter into any contract wherein the vendor or party to the transaction is a company, please ensure you verify that such company truly exists and has no issue. It will help you void simple but very costly mistakes.
Business Legal is available for you always, we run company searches at very affordable rates.