The Nigerian conundrum must be understood within the frame of; The concept of legal bodies and the institutional veil. Organisations are also legal bodies and so are living humans provided they are registered. You can own a company alone and that means the assets you own and those own by your company are classified differently, treated differently both for accounting and tax purposes. There is a legal veil between you and your company. The legal intent for this rationale was to encourage people to be risk takers and be able to ignite economic activity. Fine. The institutions however have evolved and have different aspirations but the law recognised that there are loopholes, hence you dont need only to be a profit-making organisation to enjoy veil separation. The veil can be pierced, meaning the humans or directors become equally synonymous to the organisation at their personal capacity. You cannot just pierce the veil. There needs to be good grounds, which are argued before the judge, why directors/ executives/ elders/ deputies/ trustees, etc. (basically, the board members) must face the music at personal levels. If the company or organisation was not even registered in the first place the person who leads or exert much influence must explain why not, otherwise you are prosecuted as a person who is deemed to be involve in an illegal activity or trade. Key Lesson: Organisations are as good as the people behind them. That is why you need to take reasonable care and proper diligence before someone is appointed to the board. Because that person is now a chief brand ambassador. Even though there is a veil, trust me, effectively the brand does well if the board is also effective. In reality the veil is so thin and its not a permanent privilege precisely because the judge can lift it. The levels of integrity need to be high in the church especially because society attach much hope be sentenced to prison which is a shame and a cancer which confronts the church. If your house is not in order sit down and allow people of integrity to lead the work of GOD....Grace we have is not to be abused nor taken for granted.
Posted on: Tue, 23 Sep 2014 13:19:00 +0000
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