Document background
The Silent Partner Contract is essential for businesses in Nigeria seeking private investment without ceding operational control. This document is typically used when an investor wishes to provide capital while maintaining anonymity and limiting their involvement in business operations. It addresses key aspects such as investment terms, profit sharing mechanisms, liability limitations, and exit provisions, all within the framework of Nigerian law, particularly the Partnership Act and CAMA 2020. The agreement is crucial for protecting both the silent partner's investment and the active partners' operational autonomy, while ensuring compliance with Nigerian regulatory requirements regarding partnerships, investments, and tax obligations. This document type is particularly relevant in situations where businesses need additional capital injection but wish to maintain their existing management structure and decision-making processes.
