Private Schools Can Now Be Sued as Limited Liability Company

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CEM REPORT | The Corporate Affairs Commission (CAC) has said that private school would register as limited liability companies and not as a business entities.

The commission says this would ensure the continuity of a school even if the owner dies.

This is according to the Head, CAC Zonal Officer in Kaduna, Mr Abdulkadir Modibbo, on Thursday in Kaduna at a 2-day consultative meeting on the formulation of policy to guide operations of private schools in Kaduna State.

According to him, the new development took effect from March 2022 and will ensure that private schools were essentially a corporate body capable of contracting businesses and could sue and be sued.

“For example, if the owner of a private school dies, the children can inherit the school and may decide to either continue the school or close it.

“This will affect the learners and those that long graduated from the school in case an organisation wants to verify if certain individuals graduated from a particular school.

“But a limited liability is not like that. The directors or the shareholders will continue the school even if the founder dies.

“So, anyone that wants to register a private school, will have to register it as a limited liability company with shareholders.’’

Nairametrics reports that the meeting was organised by PLANE, a seven-year education programme funded by the UK Foreign, Commonwealth and Development Office (FCDO) to invest in a more inclusive and effective education system in Nigeria.

Speaking on what would happen to the schools that were already registered under a business, Modibbo, explained that CAC was yet to take a stand on schools that were already registered under a business name.

However, the Chairman, National Association of Proprietors of Private Schools, Kaduna State Chapter, Mr Ja’afaru Riyoji, expressed concern that the development would pose a challenge as private schools fell within small-scale businesses.

Recall that the Corporate Affairs Commission, in a circular dated March 4, 2022, from the Registrar General to all approving officers of the commission, said that schools and other institutions of learning will no longer be approved as business names.

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