THE EVOLUTION OF CORPORATE FORM OF INVESTMENT

A corporation is a firm with special legal attributes that make it capable, among other things, of owning property, entering into contracts, and standing in court independently of the individuals behind it, such as owners, managers and employees.[1]

Corporate evolution in terms of association of persons noted for a common purpose began from the churches in England. And the coming of Europeans to Africa also sees the establishment of various enterprises, among which are the slave trade. However, like other newcomers in the slave trade, the British realised that to compete with their Dutch counterparts the formation of national trading companies became eminent.[2] It was then defined as “a body of persons having in law separate and distinct existence and duties from those of the individual persons who from time to time formed the corporation.”[3]

The first such effective English enterprise was the Company of the Royal Adventurers, chartered in 1660 and succeeded in 1672 by the Royal African Company. Only a monopoly company could afford to build and maintain forts considered essential to hold stock of slaves and trade goods. In the early eighteenth century, Britain and France destroyed the Dutch hold in West Africa trade, and by the end of the French Revolution and the subsequent Napoleonic wars (1799-1815), Britain had become the dominant commercial power in West Africa.[4]

This Chapter will attempt to discuss the role players of Corporate Form Investment ranging from the Joint Stock Company, the Nigerian Capital Market and the Nigerian Stock Exchange, and how these played a role in the individuals’ investment in business venture.

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[1] Berlie A.A. and Means G.C., The Modern Corporation and Private Company, (New York, The Macmillan Nineteenth printing company, 1963), p. 10.

[2]‘Nigeria Early British Imperialism’: The Colonial Legacy. Nigeria Index. Retrieved from <https://www.photius.com/countries/Nigeria/e...> on 23/02/2018.

[3] Gower L.C.B., Principles of Modern Company Law, (4^th edition, London, Stevens & Sons, 1979), p.23.

[4] Ibid.