Document background
The Single Member LLC Operating Agreement is a fundamental document required when establishing a single-member limited liability company in Nigeria. This agreement becomes necessary when an individual or corporate entity wishes to form a limited liability company with sole ownership under Nigerian law, particularly in compliance with CAMA 2020. The document serves multiple crucial purposes: it establishes the company's governance structure, outlines operational procedures, defines capital requirements, and sets forth the rights and obligations of the sole member. While Nigerian law doesn't mandate all companies to have an operating agreement, having one is considered best practice as it provides clear guidelines for business operations, helps prevent future disputes, and can be essential for banking relationships and business transactions. The agreement should be tailored to specific business needs while ensuring compliance with Nigerian corporate law requirements and regulatory frameworks.
