| Abstrakt: |
Corporate governance involves effectively running and administrating a company's business to achieve its objectives and policies while considering the interests of shareholders, stakeholders, and customers. It is a set of norms adopted as the standard practice for managing organizations, which aims to balance interests among everyone involved. A healthy corporate organization thrives on the effective distribution of organizational powers, which encourages promoting and sustaining democratic values in the sharing of corporate power, representation, and participation. However, in the Nigerian context, there have been cases of directorial abuse of power resulting in corporate misgovernance. This paper seeks to explore the legal implications of such actions and their direct or indirect impact on the wellbeing of the corporate organization in to ascertain the penalties for misgoverned. Acts that endanger the interests of the company, its investors, creditors, and customers are detrimental to the country's economy. Notably, legal instruments such as the Company and Allied Matters Acts (CAMA) 2010, Failed Banks (Recovery of Debts), Financial Malpractices in Banks Act 1994, and Investment and Securities Act (ISA) 2007 curb such actions. These legal instruments contain penal provisions for fraudulent acts or omissions by the controllers and agents of such entities. The focus of this paper therefore is to review these penal provisions and the instances of their application to fraudulent company executives in the past. One of the key objectives is to evaluate the presence of liability provisions in legal instruments that hold companies and their officers accountable for noncompliance. Ultimately, the goal of the paper is to encourage and support the implementation of sound corporate governance and management practices in Nigeria. [ABSTRACT FROM AUTHOR] |
