The Financial Services Commission of Mauritius has announced that the following FSC Rules have been issued under the Virtual Asset and Initial Token Offerings Services Act, and have come into effect on 01 July 2022
Mauritius has always been at the forefront of promoting crypto-backed assets in Africa. The country’s Financial Services Commission (FSC), the integrated regulator for the non-bank financial services sector of Mauritius, recently announced a framework aimed at ensuring more regulatory certainty with regards to security token trading systems in the country. The regulatory body stated that the move would enable the implementation of a common set of standards for the licensing of Security Token Trading Systems in Mauritius. The FSC released a 15 — page document outlining the new standards to that effect.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
According to the US Attorney for the Northern District of Texas, a Dallas-based money transfer corporation admitted to failing to sufficiently guard against money laundering.
Ping Express U.S., a money-transfer mobile app and website, pleaded guilty to one count of failing to maintain an effective anti-money laundering programme and one count of operating an illegal money-transfer business.
Christopher Miller, acting special agent of Homeland Security Investigations Dallas
Customers in the United States were charged a fee to send money to beneficiaries in Nigeria and other African countries. According to court records, the company was licenced to send money but not to execute currency transactions.
Ping Express U.S. was required to notify regulators of any questionable transactions. Ping Express pleaded in guilty papers to failing to file a single report over a three-year period, despite a large quantity of questionable client activity.
“Through our special agents and forensic accountants, we work tirelessly to remove money laundering and bulk cash smuggling crimes,” said Christopher Miller, acting special agent of Homeland Security Investigations Dallas, in a statement.
According to the company’s anti-money laundering guidelines, first-time client transactions are limited to $499, daily transactions to $3,000, and monthly transactions to $4,500. However, the business stated in plea papers that it permitted over 1,500 clients to breach these regulations.
The corporation also transacted money in places where it was not licenced, including Nevada, New Jersey, Utah, West Virginia, and Connecticut. Ping Express is only licenced in Texas, Maryland, Georgia, Washington, and Washington, D.C. Oshionebo and Odeyale received 27-month federal jail sentences.
Ping Express faces up to five years on probation and a $500,000 fine. The company’s sentencing date has been set on December 19.
According to its LinkedIn profile, Ping Express was formed in 2015 and has 11 to 50 employees. The company’s website was unavailable at the time of this report.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
MTN Congo S.A. is happy to announce to all of its stakeholders that, under decree n°2708/MFBPP-CAB of 27 May 2022, its subsidiary Mobile Money Congo, or MMC S.A for short, has been established. It claims it is the first company to offer electronic in Central Africa.
MTN CEO, Rob Shuter,
Mobile Money Congo S.A. is now permitted to offer payment services such as transfers & withdrawals, purchases of credits & telephone plans, payment of invoices, salaries, taxes & duties, collections & funds, as well as receiving international transfers.
This approval represents a significant milestone in the development of the Mobile Money service and identifies this service as a major contributor to the acceleration of financial inclusion for more than a decade. MMC S.A., the Congolese leader in mobile payment, will offer more creative, secure, and easy-to-use solutions throughout the country and the CEMAC region.
Mobile Money Congo S.A. is more than 3 million accounts opened, a network of more than 25,000 approved Agents, 20,000 points of sale using Mobile Money as a payment method, and more than 30,000 direct and indirect jobs created in the Democratic Republic of the Congo.
Even with this new status, MMC S.A will continue to strive to provide the best customer experience possible by making all Mobile Money services accessible via the standard channels.
Mobile money Central Africa Mobile money Central Africa
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
The federal government of Ethiopia has designated five ICT-related investment areas as ones that are eligible for income tax and duty tax incentives in an effort to foster an environment that is amenable to the development of new technologies and innovations.
The five categories were chosen for the tax holidays as a result of the Ministry of Innovation and Technology (MINT) determining that they were in need of a boost and as part of a new investment incentive regulation that extends special rights for specific sectors to promote private sector investment. In other words, the tax holidays are a form of investment incentive regulation.
Ethiopian prime minister Abiy Ahmed
As a consequence of this, any domestic or foreign investor who establishes a new business in one of the following five categories will be exempt from paying income tax for the subsequent four years: (1) software development; (2) data centre and cloud service; (3) business outsourcing process; (4) startup development service; and (5) Research, innovation, enrichment, and development works.
If the investment is made outside of the capital and the areas immediately surrounding it, the tax exemption period increases to five years. This applies to both the company income tax and the employment tax. In addition, new firms that operate in certain industries are eligible to import duty-free capital goods and building materials, which are essential for launching a new business or growing an existing one.
Additionally eligible for certain exclusions are companies that were in operation prior to the regulation. However, the new law does not address the kind or magnitude of the incentives, and it is anticipated that the Ministry of Finance will issue a directive addressing incentives for companies that are already in operation.
The new investment incentive regulation, which was turned into a law on May 22, 2022, by the Council of Ministers, also carries loss carry forward benefits, which allow an investor who has incurred a loss while the investment is still exempt from income tax to carry forward the loss for half of the exemption period after the exemption has expired.
In Ethiopia, a standard classification is used to offer a complete list of the numerous sorts of business licences that can be gained across a variety of industries. There are more than five hundred distinct kinds of business licences. In addition to these categories, governmental entities have the authority to issue specific permits for domains that are not included on the list.
MINT was requested to offer a list of business categories that it is monitoring that should be exempted, and it chose these five business areas as ones that require a push.
Ethiopia has made previous attempts to provide its inventive environment with some form of legal protection, so this is not the first time it is doing so. The Startup Act of Ethiopia, which is currently in the prototype phase, aims to provide individualised support for new businesses and encourage entrepreneurial endeavours.
The document proposes the implementation of a number of initiatives, including tax incentives, that are expressly aimed at resolving the most significant challenges that have been faced by startups and other actors in the ecosystem. Despite this, the draught has been on hold for the past two years, and it has not yet been enacted into law.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
Orange Cameroon, a mobile phone service provider, has reported that the Ministry of Finance notified it on July 5, 2022 that it had been granted permission to open Orange Money Cameroon SA, its company dedicated to mobile financial transactions. The operator claims that “Orange Money Cameroon SA becomes the first payment institution in Cameroon.”
Anne Catherine Tchokonté Tholagheu,CEO Orange money Cameroon
Specifically, Orange Money Cameroon SA is now authorised to independently provide payment services such as deposits, transfers, and withdrawals of money, purchases of credits and telephone packages, payment of bills, salaries, taxes, and duties, collection and collection of funds, and receipt of international money transfers, as of May 5, 2022, per the mobile phone company.
This certification represents “a new milestone in the development of Orange Money as a major participant in financial inclusion for more than a decade and the leader in mobile payment in Cameroon,” according to Orange Cameroon authorities. In fact, according to the mobile phone company’s data, the Orange Money service, which will now be managed by an independent subsidiary, had already claimed 10 million accounts in the countries, more than 100,000 trading partners, and approximately 200,000 direct and indirect jobs before receiving the aforementioned approval.
Orange Cameroon has appointed Anne Catherine Tchokonté Tholagheu, a Cameroonian who was already piloting the Orange Money service in mobile telephony, as the General Manager of its new subsidiary in order to maintain its leadership and further develop its offerings on a highly competitive local market. Serge Hervé Eyiké, the newly appointed Deputy Managing Director, will support her.
In compliance with the legislation governing the practise of banking in the CEMAC zone, the Minister of Finance also approved the appointment of KPMG Central Africa as Orange Money Cameroon SA’s statutory auditor, while Bekolo & Partners was appointed as the company’s first alternate auditor.
Orange Money Cameroon SA enables the Orange group to be better positioned to grasp future prospects in the field of mobile payments, such as the State of Cameroon’s recent decision to mandate the payment of taxes and fees via mobile. This decision has enabled people to pay approximately 10 billion FCFA in taxes and duties via mobile device in 2021 alone, according to Ministry of Finance figures.
The fact that the amount collected by this payment mode constitutes only 0.47 percent of the 2,109.3 billion FCFA received by the General Directorate of Taxes in 2021 demonstrates that the mobile payment business in the country has tremendous opportunity for growth.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
Morocco ’s Administration of Customs and Indirect Taxes (ADII) has announced that foreign ecommerce platform transactions will no longer be exempt from customs duties as of July 1, 2022. The new rule now requires firms or consumers to pay value-added tax and import charges on products supplied or acquired.
digital tax
The announcement generated much criticism. According to the ADII, beginning on July 1, 2022, purchases conducted through international e-commerce platforms would no longer be exempt from import customs duties, regardless of value.
According to the same source, this rule does not apply to non-commercial imports valued at less than 1,250 dirhams, which will continue to be exempt from customs duties in accordance with the aforementioned directive.
The Customs Administration justifies the new step by citing the development of online shopping, noting that certain sites’ turnover in Morocco exceeded one billion dirhams in 2021. In addition, investigations conducted by Moroccan authorities revealed that illicit actions were to blame for this disturbing trend.
The new levies differ based on the characteristics of the products. In addition to the fixed VAT, import levies can differ from nation to country. Regarding the first, the standard rate is 20 percent. If an item’s initial selling price before this policy was 100 dirhams, you would be required to pay an additional 20 dirhams. If the item in question is a textile, the additional cost would be 40 dirhams in the form of an import charge of 40 percent. This similar rate climbs to 2.5% if the product is electrotonic.
Regarding Turkish products, textile import duties are 36%. Therefore, the additional cost would be 36 dirhams.
The application of these taxes also stems from the fact that the shipments sent by certain international e-commerce platforms are actually import operations involving large quantities of goods, under the guise of the customs facilities made available for exceptional shipments that are not of a commercial nature and contain low-value goods.
This situation has led to the emergence of a black market consisting of the resale of items acquired through international e-commerce sites, using fraud on the declared value of purchases (under-invoicing) or distributing them among several beneficiaries, while the real buyer is the same person, in order to benefit from the customs exemption and to circumvent consumer protection control standards. The ADII noted that it attempts to balance the market with these actions because “these acts constitute unfair competition for local industry and formal commerce, a loss of revenue for the state, and a potential threat to consumer health.”
“In order to solve this situation, a tightening of customs controls on e-commerce shipments was deemed necessary,” says the ADII.
“Accordingly, it was decided to change the terms of Article 190-e)-2° of Decree №2–77–862 governing unusual shipments devoid of any commercial nature.”
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
The National Information Technology Development Agency (NITDA) has made available for public reading and comment a Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries.
The Agency cited Section 6 of the NITDA Act of 2007, which grants it the authority to standardize, coordinate, and implement regulatory frameworks for all Information Technology (IT) operations in Nigeria.
Mrs. Hadiza Umar, Head of Corporate Affairs and External Relations at NITDA
According to a statement signed by Mrs. Hadiza Umar, Head of Corporate Affairs and External Relations at NITDA, the code of practice was developed in accordance with NITDA’s mandates and President Muhammadu Buhari’s directive to develop a Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries (Online Platforms), in collaboration with relevant Regulatory Agencies and Stakeholders.
In accordance with the directive, NITDA proposes to present to the public for additional assessment and input a Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries.
“The objective of the Code of Practice is to defend the fundamental human rights of Nigerians and non-Nigerians residing in the country, as well as to establish norms for interacting within the digital ecosystem.
This conforms to worldwide best practices as found in democratic nations such as the United States, the United Kingdom, the European Union, and the United Nations.
She stated that the Code of Practice was created in partnership with the Nigerian Communications Commission (NCC) and National Broadcasting Commission (NBC), with input from Interactive Computer Service Platforms like Twitter, Facebook, WhatsApp, Instagram, Google, and Tik Tok, among others.
Other key stakeholders with specialized expertise in this area, such as Civil Society Organizations and expert groups, were consulted.
“The consultation results were appropriately included into the draft code of practice.”
The new worldwide truth is that the activities undertaken on these Online Platforms have a tremendous impact on our society, social interactions, and economic decisions.
Umar stated, “Therefore, the Code of Practice is an intervention to realign the relationship between Online Platforms and Nigerians in order to maximize mutual advantages for our nation while creating a sustainable digital economy.”
In addition, the Code of Practice establishes safeguards to protect the safety and well-being of Nigerians when communicating on these platforms.
“It seeks to hold Online Platforms accountable for unlawful and harmful content on their Platforms. In addition, it offers a comprehensive framework for coordinated efforts to safeguard Nigerians from online harms such as hate speech, cyberbullying, and disinformation and/or misinformation. Similarly, to ensure compliance with the Code of Practice, NITDA wishes to inform all Interactive Computer Service Platforms/Internet Intermediaries operating in Nigeria that the Federal Government of Nigeria has established operating requirements in the country,” she added.
In accordance with Nigerian law, these criteria address legal registration of operations, taxation, and the management of forbidden publication. The following are the conditions:
Establish a legal entity, i.e., register with the Corporate Affairs Commission (CAC);
Appoint a designated country representative to interface with Nigerian authorities;
Adhere to all regulatory requirements after establishing a legal presence;
Comply with all applicable tax obligations on its operations under Nigerian law;
Provide a comprehensive compliance mechanism to prevent publication of prohibited content and unethical behavior on their platform; and
Provide information to a Nigerian government agency.
The Draft Code of Practice is available for public reading and input on the NITDA website.
Umar stated, “The Federal Government reaffirms its commitment to ensuring that Nigeria fully exploits the potentials of the Digital Economy and protects the security and interests of its citizens within the digital ecosystem.”
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
The National Bank of Ethiopia (NBE) has withdrawn its ban on the digital remittance platforms MamaPays and CashGo, which work in collaboration with the Bank of Abyssinia (BoA).
The regulator, which earlier viewed the platforms providing services for which they did not have a permission, overturned its decision three months after it ordered their closure.
The app’s legality in providing remittance services has now been settled, and both Mama Pay and CashGo are back in business.
Bersufekad Getachew, CEO of Eaglelion
“It’s fantastic news to learn that the central bank has lifted the suspension of remittance transfer platforms, allowing the appropriate venue to begin operations,” commented Bersufekad Getachew, CEO of Eaglelion, the IT business behind CashGo, on LinkedIn.
According to Addis Fortune, who reported on the ban, the National Bank’s Foreign Exchange Monitoring & Reserve Management summoned Abyssinia to clarify the legality of the remittance operations through the apps and what distinguishes them from traditional money transfer services.
The NBE’s international remittance service law requires banks to engage in international remittance services only after cooperating with an internationally licensed “International Remittance Service Provider,” such as Western Union.
The NBE certifies approximately 72 international remittance service providers to Ethiopia, although CashGo and MamaPays were not among them. The rule, which failed to lay out a clear manner for alternative remittance mechanisms to work in Ethiopia as well as for domestic enterprises to launch their own services, was blamed for the restrictions.
“Regulation and Innovation have always clashed,” stated Vincent Diop, CEO of BelCash, in one telegram group.
According to a UNCDF study, an estimated 1.3 million Ethiopian migrants worldwide send up to USD 5 billion back to Ethiopia each year, accounting for more than 5% of the country’s GDP and one-quarter of its foreign exchange profits.
However, the cost of sending money to Ethiopia from Europe, the Middle East, and North America averages 7%, 4%, and 5% of the transaction value, respectively.
The greatest winners in remittance markets have historically been a few corporations whose near-monopoly costs the African continent roughly $2 billion in remittance fees each year.
Remittance Service Providers (RSPs), such as Western Union and Money Gram, also dominate the Ethiopian remittance business.
These service providers work with local banks to facilitate international transactions. In recent years, mobile money platforms like as Hello Cash, CBE Birr, Amole, and Awash Birr have implemented remittance services in collaboration with international remittance and cross-border payment service providers.
Ethio Telecom’s Telebirr has launched a remittance service in collaboration with Remitly and Thunes, with additional carriers anticipated to join. SWIFT facilitates the vast bulk of the top players’ remittances to Ethiopia. This payment technology enables banks all across the world to send messages and communicate safely and rapidly about cross-border payments. Local IT companies who have recently entered the remittance industry have figured out a low-cost and speedy remittance solution using international payment gateways rather than SWIFT.
Enter CashGo and MamaPays. CashGo is a remittance and crowdfunding website launched in collaboration with EagleLion, a local technology business, and Bank of Abyssinia. Belcash Technology Solutions and Abyssinia offer MamPays, another remittance platform.
People can use their mobile phones to send money using their Master Card or Visa Card. This card-based remittance is frequently instant, and the receiver is credited in Birr to their Abyssinia account. These platforms charge less for remittance transactions than traditional RSPs such as Western Union. MamPays charges a one-time fee of one dollar per transaction, whereas CashGo charges a 1.5 percent service fee.
MamaPays had 20,000 downloads and 200,000 dollars in transactions in the month before the regulator ordered its suspension.
“We are pleased that the central bank values the transfer protocols’ efforts to enhance remittances. It is an undeniable fact that remittances are an important tool in aiding the general economic health,” Bersufekad said.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
The South African apex bank, Reserve Bank of South Africa has said that a digital rand could cut the high cost of cross-border payments for banks but its introduction is still a few years away, a senior central bank official said.
However, regulation of crypto assets is in the offing and might come into force within the next nine to 15 months, Reserve Bank deputy governor Kuben Naidoo said in an interview.
It costs 13% of a transaction to remit money from South Africa to another country, more than double the average of the G20 leading global economies, according to a 2021 World Bank report.
Reserve Bank deputy governor Kuben Naidoo
The next stage is for regulators to test the digital rand at a bigger scale and develop rules for its use. Sending money to South Africa costs 6.2%.
Some countries are planning to introduce e-versions of traditional currency, known as central bank digital currencies (CBDCs), and are studying how the underlying technology could be used.
China’s digital yuan project is the most advanced among large economies, though central banks from the euro zone to the US are in varying stages of research into CBDCs.
It could be recalled that Nigeria’s central bank introduced an eNaira for use by ordinary citizens last year.
South Africa has conducted small-scale experiments with a wholesale CBDC and participated in a cross-border pilot with the central banks of Malaysia, Australia and Singapore. The next stage is for regulators to test the digital rand at a bigger scale and develop rules for its use.
“We’re still learning, we’re still experimenting,” Naidoo said.
Meanwhile, Naidoo said the Reserve Bank wants regulation of crypto assets to prevent theft, money laundering and undermining of monetary policy and hopes it will be in place in the next 15 months.
“If crypto assets were to become a very ubiquitous currency, you could undermine the authority of the central bank,” he said.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
In accordance with a statute issued in the Official Journal (JO) №32, a new legal form of business called “Simplified Joint Stock Company” (SPAS) has been established for startups in Algeria.
“The simplified joint-stock company is a company whose capital is divided into shares and whose partners only have to pay for losses up to the amount they put in,” says law No22–09 amending and adding to Ordinance No75–59 of September 26, 1975, which set up the Commercial Code.
Startups
In a statement, signed by the President of the Republic, Abdelmadjid Tebboune, on May 5, it is made clear that the simplified joint-stock company is only reserved for companies certified as “startups”.
The SPAS can be set up by one or more natural or legal people, according to the law. When it is just one person, it is called a “single-person simplified joint-stock company.”
This kind of corporation is set up “without requiring a minimum number of partners or capital.” It is also different because its bylaws spell out how it is set up and how it works.
The SPAS’s share capital is set out in its bylaws, and the law says that this type of corporation “cannot make a public call for savings or proceed to the admission of its shares on the Stock Exchange.”
The law also states that it can only issue nontransferable shares.
These contributions don’t add to the share capital, but they do lead to the allocation of shares, which gives the owner the right to share in the company’s profits, losses, and net assets. In its articles of incorporation, the company may state how much it is worth and how much money it makes.
The powers of the Board of Directors or its Chairman are exercised by the Chairman of the SPAS or the manager designated as “General Manager” or “Deputy General Manager” in the articles of incorporation.
In a one-person simplified joint-stock company, the role of the chairperson is also held by the lone shareholder. This means that the single shareholder does the things the chairman is supposed to do and makes the decisions that the shareholders’ meeting is supposed to make.
The law also says that the same rules that apply to a joint-stock company’s chairman or board of directors also apply to a simplified joint-stock company’s chairman, general manager, or deputy general manager.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
