Legal Question in Business Law in Nigeria

A company can use its own funds to defend itself.

As for directors, company funds can be used, but only if they are sued on account of action taken in their capacity as directors. If they are sued for personal conduct not related to the business or affairs of the company, it would be wrong to use company funds to defend directors. It is also the law is that generally, directors are not personally liable for actions taken on behalf of the company.