Shareholders’ Powers and Responsibilities in the Practice of Good Corporate Governance in Nigerian

ABSTRACT

This paper looks at the heady issue of shareholders’ powers and responsibilities in the practice of good governance with particular reference to Nigerian banks. It examines bank governance and the peculiar nature of risk faced by banks and the limited scope of both bondholders and depositors to engage in risk monitoring of banks. It rationalises that it is the shareholder who is in a better position to monitor managers of banks and looks into the various rights/powers donated to the shareholders to achieve success in that regard. It contends that the responsibilities attached to the rights given to the shareholders if it has been well discharged remains a sore point. It argues that if shareholders are to take their rights seriously and discharge their responsibilities diligently effective monitoring of the banks can be achieved to the betterment of all the stakeholders in the banking enterprise.

Keywords: Shareholders, powers, responsibilities good corporate governance.

 

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