ICANBusiness LawCompany Law: Directors, Meetings and Shares2024

Eko Industrial Ltd has a total paid-up share capital of ₦10,000,000 comprising 10,000,000 ordinary shares of ₦1.00 each. A group of minority shareholders wishes to requisition an Extraordinary General Meeting (EGM) to resolve a dispute with executive directors. According to Section 239(1) of CAMA 2020, what is the minimum collective paid-up share capital value this group must hold to legally force directors to convene the EGM?

A₦500,000
B₦1,000,000CORRECT
C₦2,500,000
D₦5,000,000
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Why the answer is B, and why the others tempt you.
Section 239(1) of CAMA 2020 provides that directors shall convene an EGM on the requisition of members holding not less than one-tenth (10%) of the paid-up capital of the company carrying voting rights at general meetings. For Eko Industrial Ltd, 10% of ₦10,000,000 paid-up capital equals ₦1,000,000.
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