Corporate Governance in Nigeria Banks
CHAPTER ONE
INTRODUCTION
According to Phillips (2007) “Corporate governance is an encompassing policy, processes and people, which serves the needs of shareholders and other stake holders by directing and controlling management activities with good business savvy, objectivity and integrity”. The author stated that sound corporate governance is dependent on external market place commitment and legislation plus a healthy board culture that safeguards policies and processes. Magdi and Nadereh (2002) stress that corporate governance is about ensuring that the business is run well and investors receive a fair return. The Organization for Economic Cooperation and Development (OECD) report provides a more encompassing definition of corporate governance. It defines corporate governance as the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company’s objectives are set and the means of attaining those objectives and monitoring performance (Kajola, 2008). Equally, Kwakwa and Nzekwu(2003) refer corporate governance to the manner in which the power of a corporation is exercised in accounting for corporation’s total portfolio of assets and resources with the objective of maintaining and increasing shareholder value and the satisfaction of other stake holders while attaining the corporate mission.
Economic Commission for Africa (ECA) report(2005) refers corporate governance as the mechanisms through which private or state-owned corporations and their management are governed, and that it provides a structure through which the objectives and the performance of a corporation are determined and monitored.
INTRODUCTION
According to Phillips (2007) “Corporate governance is an encompassing policy, processes and people, which serves the needs of shareholders and other stake holders by directing and controlling management activities with good business savvy, objectivity and integrity”. The author stated that sound corporate governance is dependent on external market place commitment and legislation plus a healthy board culture that safeguards policies and processes. Magdi and Nadereh (2002) stress that corporate governance is about ensuring that the business is run well and investors receive a fair return. The Organization for Economic Cooperation and Development (OECD) report provides a more encompassing definition of corporate governance. It defines corporate governance as the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company’s objectives are set and the means of attaining those objectives and monitoring performance (Kajola, 2008). Equally, Kwakwa and Nzekwu(2003) refer corporate governance to the manner in which the power of a corporation is exercised in accounting for corporation’s total portfolio of assets and resources with the objective of maintaining and increasing shareholder value and the satisfaction of other stake holders while attaining the corporate mission.
Economic Commission for Africa (ECA) report(2005) refers corporate governance as the mechanisms through which private or state-owned corporations and their management are governed, and that it provides a structure through which the objectives and the performance of a corporation are determined and monitored.