ICANBusiness, Management and FinanceOrganisational Structure and Culture2021

Under the Companies and Allied Matters Act (CAMA) 2020, which of the following provisions MOST directly influences the formal organisational structure of a public company incorporated in Nigeria?

AThe requirement for a company to maintain a register of members under Section 83
BThe mandatory separation of the roles of Chairman and Chief Executive Officer under Section 265CORRECT
CThe requirement for annual general meetings under Section 237
DThe obligation to file annual returns under Section 417
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Section 265 of CAMA 2020 requires public companies to separate the roles of Chairman and Chief Executive Officer, directly shaping the formal governance and organisational structure at the top management level. This provision prevents concentration of power in one individual and enforces a structural check and balance. The other options relate to administrative and compliance obligations rather than the design of organisational structure.
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