100+ Free Nigerian Bar Final Corporate Law Practice Practice Questions

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2026 Statistics

Key Facts: Nigerian Bar Final Corporate Law Practice Exam

100

Practice Questions

Antigravity Prep

CAMA 2020

Primary Statute

Council of Legal Education

40%

Individual Pass Mark

NLS Rules

₦476,000

Program & Exam Fee

Nigerian Law School

CAC & FCCPC

Key Regulatory Portals

Nigerian Statutes

Theory + MCQ

Assessment Format

Bar Finals

The Nigerian Bar Final Corporate Law Practice exam is a key vocational paper testing practical knowledge of corporate law under CAMA 2020. The evaluation includes both MCQ and drafting/theory sections, requiring a solid grasp of company formation, meetings, governance, finance, restructuring, and insolvency.

Sample Nigerian Bar Final Corporate Law Practice Practice Questions

Try these sample questions to test your Nigerian Bar Final Corporate Law Practice exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following business structures in Nigeria provides the benefit of limited liability to its owners while having the least stringent statutory disclosure requirements?

A.Private Limited Company (LTD)

B.Public Limited Company (PLC)

C.Business Name (Sole Proprietorship)

D.General Partnership

Explanation: A Private Limited Company (LTD) offers limited liability to its members, meaning their liability is restricted to the amount unpaid on their shares. Compared to a Public Limited Company (PLC), an LTD has significantly fewer statutory disclosure obligations, such as not being required to publish its audited accounts to the general public. Business Names and General Partnerships do not offer limited liability.

2Under Section 18(2) of the Companies and Allied Matters Act (CAMA) 2020, what is the minimum number of persons required to form a private company in Nigeria?

A.One person

B.Two persons

C.Seven persons

D.Five persons

Explanation: Section 18(2) of CAMA 2020 introduces a major reform allowing a single individual to incorporate and run a private company in Nigeria. Under the previous 1990 Act, a minimum of two persons was required. Public companies and companies limited by guarantee still require a minimum of two members.

3What is the minimum issued share capital for a private company limited by shares under Section 27(2)(a) of CAMA 2020?

A.₦100,000

B.₦10,000

C.₦500,000

D.₦1,000,000

Explanation: Section 27(2)(a) of CAMA 2020 requires that the minimum issued share capital of a private company limited by shares must be ₦100,000. This is an increase from the ₦10,000 nominal authorized share capital required under the 1990 Act. Furthermore, the concept of 'authorized share capital' has been replaced with 'issued share capital'.

4Under Section 27(2)(b) of CAMA 2020, what is the minimum issued share capital required for a public company limited by shares?

A.₦2,000,000

B.₦500,000

C.₦10,000,000

D.₦1,000,000

Explanation: Section 27(2)(b) of CAMA 2020 mandates that a public company limited by shares must have a minimum issued share capital of ₦2,000,000. Under CAMA 1990, the threshold was ₦500,000 of authorized share capital. At least 25% of the issued share capital must be paid up at the time of incorporation.

5Under Section 394 of CAMA 2020, which of the following criteria must a private company satisfy to qualify as a small company?

A.Its turnover is not more than ₦120 million and its net assets are not more than ₦60 million

B.Its turnover is not more than ₦10 million and its net assets are not more than ₦5 million

C.Its turnover is not more than ₦500 million and its net assets are not more than ₦250 million

D.Its turnover is not more than ₦50 million and its net assets are not more than ₦25 million

Explanation: Under Section 394(3) of CAMA 2020, a company qualifies as a small company if it is a private company, none of its members is an alien or government corporation, and it meets the financial thresholds: turnover of not more than ₦120 million and net assets of not more than ₦60 million. Qualifying as a small company grants exemptions from holding Annual General Meetings, appointing a company secretary, and having statutory audits.

6What is the legal status and enforceability of a pre-incorporation contract under Section 96 of CAMA 2020?

A.It is not binding on the company until the company ratifies it after incorporation

B.It is automatically binding on the company from the moment of incorporation

C.It is void ab initio and cannot be ratified under any circumstances

D.It is only binding on the third party but cannot bind the promoters personally

Explanation: Section 96 of CAMA 2020 provides that a pre-incorporation contract is not binding on the company unless the company, after its incorporation, ratifies it. Until ratification, the promoters who entered into the contract are personally liable. This modifies the common law rule in Kelner v. Baxter, which held that a company could not ratify a contract entered into before it existed.

7According to Section 31(2) of CAMA 2020, for how long is a name reserved by the Corporate Affairs Commission (CAC) valid?

A.60 days

B.30 days

C.90 days

D.14 days

Explanation: Section 31(2) of CAMA 2020 states that a name approved and reserved by the Corporate Affairs Commission (CAC) shall be held for a period of 60 days. During this time, no other company can register with the same or a confusingly similar name. The reservation may be renewed upon application under specific conditions.

8When registering an association as an Incorporated Trustees under Part F of CAMA 2020, what publication requirement must be met?

A.Publication in two national daily newspapers inviting objections within 28 days

B.Publication in the Federal Gazette within 14 days

C.Publication in one local newspaper and one international journal within 30 days

D.No publication is required for incorporated trustees under the new Act

Explanation: Under Part F of CAMA 2020 (formerly Part C under the old Act), applicants seeking the registration of Incorporated Trustees must publish a notice of application in two national daily newspapers. The notice must contain the names of the proposed trustees and invite objections from the public within 28 days of the publication.

9Under the provisions of CAMA 2020, which of the following is a characteristic of a Limited Liability Partnership (LLP)?

A.It is a body corporate with a legal personality separate from its partners

B.It does not have perpetual succession and dissolves upon a partner's death

C.All partners are jointly and severally liable for the company's general torts

D.It is registered under Part E of the Act along with Business Names

Explanation: CAMA 2020 introduced Limited Liability Partnerships (LLP) under Part C. An LLP is a body corporate formed and registered under the Act, having a separate legal personality from its partners, and enjoying perpetual succession. The liability of the partners is limited to their agreed contribution to the partnership.

10What is the statutory composition of partners required to register a Limited Partnership (LP) under Part D of CAMA 2020?

A.At least one general partner (with unlimited liability) and one limited partner (with limited liability)

B.At least two general partners and no limited partners

C.At least two limited partners, with all general partners being corporate bodies

D.At least seven partners, all having equal and limited liability

Explanation: Under Part D of CAMA 2020, a Limited Partnership (LP) must consist of one or more general partners (who are liable for all debts and obligations of the firm) and one or more limited partners (who contribute capital and whose liability is limited to the amount contributed). An LP cannot consist entirely of general partners or entirely of limited partners.

About the Nigerian Bar Final Corporate Law Practice Exam

The Corporate Law Practice (CLP) examination is a core component of the Nigerian Bar Finals (Bar Part II). It tests candidates on the legal, administrative, and ethical frameworks governing corporate entities and business operations in Nigeria. The curriculum focuses heavily on the Companies and Allied Matters Act (CAMA) 2020, covering topics from business formation and incorporation to corporate governance, company meetings, capital structures, foreign investments, restructuring, and winding up procedures. Candidates are evaluated on their ability to apply statutory provisions, advise clients, and draft essential corporate documents.

Assessment

Multiple-choice questions (MCQs) and written scenario/drafting questions

Time Limit

1 hour (MCQ section) / 3 hours (Theory section)

Passing Score

40%

Exam Fee

₦476,000 (included in school fees) (Council of Legal Education (CLE) / Nigerian Law School)

Nigerian Bar Final Corporate Law Practice Exam Content Outline

20%

Choice of Business Organization & Incorporation

Legal status and characteristics of sole proprietorships, partnerships, companies, and incorporated trustees. Promoters' duties, pre-incorporation contracts, company names availability, and the step-by-step incorporation procedure on the CAC Portal.

20%

Corporate Governance & Administration

Appointment, tenure, disqualification, duties, and removal of directors. Role of the company secretary and company secretary exemption for small companies. Audit requirements, auditors' duties, and annual returns compliance.

20%

Corporate Meetings & Resolutions

Types of general meetings (Statutory Meeting, Annual General Meeting, Extraordinary General Meeting), board meetings, notice periods, service of notice, voting, proxies, and drafting of ordinary and special resolutions.

20%

Corporate Finance & Securities

Share capital rules (minimum issued share capital of ₦100,000 for private and ₦2,000,000 for public companies), share allotment, transfer, and transmission. Debentures, charges, registration of charges at CAC, NIPC registration, and NOTAP approval for foreign-owned businesses.

20%

Restructuring, Insolvency & Ethics

Procedures for mergers and acquisitions (FCCPC/SEC approval), takeovers, and arrangements. Insolvency regimes including receivership, winding up (members' voluntary, creditors' voluntary, and by the court), and professional ethics including billing and clients' accounts.

How to Pass the Nigerian Bar Final Corporate Law Practice Exam

What You Need to Know

Passing score: 40%
Assessment: Multiple-choice questions (MCQs) and written scenario/drafting questions
Time limit: 1 hour (MCQ section) / 3 hours (Theory section)
Exam fee: ₦476,000 (included in school fees)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

Nigerian Bar Final Corporate Law Practice Study Tips from Top Performers

1Familiarize yourself with the key reforms introduced by CAMA 2020, such as the option for a small private company to have a single director and shareholder.

2Understand which companies are exempt from appointing a company secretary (small companies) and from holding Annual General Meetings (small companies or single-shareholder companies).

3Practice drafting corporate resolutions, Memorandums of Association, Articles of Association, and forms of notices for general meetings.

4Memorize the timeframes for CAC filings: most post-incorporation filings, such as changes in directors or allotment of shares, must be filed within 14 days, while annual returns are filed within 42 days of the AGM.

5Be clear on the roles of NIPC (registration of foreign investment) and NOTAP (registration of technology transfer agreements) for foreign participation.

6Distinguish between members' voluntary winding up (where the company is solvent and a declaration of solvency is filed) and creditors' voluntary winding up (where the company is insolvent).

Frequently Asked Questions

What is the primary governing legislation for the Corporate Law Practice exam?

The primary statutory authority is the Companies and Allied Matters Act (CAMA) 2020, which repealed and replaced the 1990 Act. It introduces significant corporate reforms such as single-member companies, small company exemptions, and the concept of minimum issued share capital.

Are there specific minimum share capital requirements under CAMA 2020?

Yes. Private companies limited by shares must have a minimum issued share capital of ₦100,000, while public companies limited by shares must have a minimum issued share capital of ₦2,000,000. These are no longer called 'authorized share capital' under the 2020 Act.

What are the rules regarding virtual meetings in corporate administration?

Under CAMA 2020, private companies are legally permitted to hold their general meetings virtually, provided such meetings are conducted in accordance with the company's Articles of Association. Public companies are still required to hold physical meetings unless exempt or otherwise permitted.

How has merger approval changed in Nigeria recently?

Following the enactment of the Federal Competition and Consumer Protection Act (FCCPA) 2018, the authority to review and approve mergers was transferred from the Securities and Exchange Commission (SEC) to the Federal Competition and Consumer Protection Commission (FCCPC). However, the SEC still retains oversight of mergers involving public companies from a capital market perspective.

What is the pass mark for Corporate Law Practice in the Bar Finals?

The pass mark for individual papers is 40% (grade 'E'). However, NLS grading operates on a cumulative GPA and strict rules where a fail ('F') in any single course can result in overall failure, requiring the student to retake the entire exam diet.