TITLE:
Shareholder’s Democracy under the Nigerian Company Law
AUTHORS:
Elisabeta Smaranda Olarinde, Udosen Jacob Idem
KEYWORDS:
Shareholders’ Democracy, Corporate Organs, Proxy System, Directors and Meetings, Nigeria
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.10 No.5,
May
29,
2020
ABSTRACT: The performances of corporate entities in Nigeria leave much to be desired (Onyekelu, 2019). Reasons for company failure are mismanagement and fraudulent practices by the directors who oversee the day-to-day management of the company and lack of effective supervisory powers of the shareholders over the activities of directors. This paper examines the shareholder’s democracy over the board of directors in modern corporate governance in Nigeria. The article adopted expository, analytical and comparative methods in conducting this research. Part of the findings of the paper is that the directors who control the day-to-day affairs of the company also control the machinery for company meetings, which is one of the major ways in which shareholders involve themselves in corporate governance. The authors suggest that to guarantee shareholders franchise in Nigeria, Sections 217, 230 and 232(1) of CAMA should be amended to give shareholders the power to issue notices of meetings (Onyekelu, 2019).