Application of Corporate Personality Doctrine under the Nigerian Corporate Law and Shari'ah
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Date
2022-12-31
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Lloyd Law College, India
Abstract
Corporate personality doctrine has come to protect business enterprises from associated risks in the course of business transactions. The beneficiaries of the corporate personality doctrine are the corporate managers because of the statutory protection they enjoy under the Nigerian corporate law. The statutory protection is being used as catalyst to perpetuate corporate governance failure. With the recognition of artificial personality (Shakhsiyyah ‘Itibaariyyah) in Islamic jurisprudence vide the position of certain schools of jurisprudence, there is need to examine whether such statutory protection is affirmed as well. This paper therefore examines the application of corporate personality doctrine under the Nigerian corporate law and Shari’ah. This paper adopts doctrinal method of legal research vide reliance on the primary and secondary sources like Qur’an and hadith, Qiyas, the Nigerian Constitution, Company and Allied Matters Act, text books, journals and internet facilities. The paper reveals that the implications of corporate personality doctrine under the Nigerian Corporate Law and Shari’ah are not on all fours. It further reveals that the existing legal framework in the country favours the application of the corporate personality doctrine under the Nigerian Corporate Law but hinders the actual practicability of Shari’ah rules to corporate personality doctrine. The paper concludes that to fully activate the provision of Section 38 of the Constitution in favour of Shari’ah, there is need for amendment of the existing framework to make way for Shari’ah modification in dealing with the corporate activities by Muslim corporate managers as a form of contribution to fight against corporate governance failure in the country.
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8 (1) Lexigentia (2022)