BACKGROUND TO THE STUDY
In 1960, Belle wrote “the cause of the bigness is still with us”. He
referred to the large Modern Corporations wielding unassailable economic
power adversely affecting the interest of the commonly.
Since Management powers are vested in Directors who are the main
controllers of the corporation.
Berle feared that they might abuse their powers and neglect the interest
of shareholders and beneficiaries.
To some extent Berle’s fears have not been ill-founded. In the UK for
example corporate scandals such as BOCCI, the collapse of Maxwell
empire, while in HAS the crumbling of such big million – billion dollars like
Enron world com and global crossing among others.
And in Nigeria, these appear as some strange event happening afar but
corporate Nigeria is already awash with worse case of the abuse of
corporate governance. Like the case of hidden liabilities in African
In this above pre-amble,it can be seen that some international and local
companies had collapse or failed due to poor management and bad
corporate governance. All center on management, which is the running of
companies operations efficiently and effectively.
However, the governance of companies is not centered or concerned with
running of the companies, perse, but with directors giving over all
direction of the companies.
If management is about running business; governance is about seeing
that it is run properly. Therefore all companies need governing as well as
Although the concept of corporate governance is well recognized in most
advance countries it has hardly received full attention in Nigeria because
of the traditional view maintained by the corporate governance system.
These directors are to maximize x for shareholders. As the interest of the
later are of paramount concerns to the directors.
Corporate governance system in Nigeria is rooted in the concept of profit
maximization rather than profit optimization. This have undergone some
changes in the recent years due to stakeholders concept in corporate
governance. Also the Nigeria company law entails a tripartite system of
corporate governance, directors, shareholders and auditors.
Whereas, the directors are regarded as leaders for company’s
management’s profit and the shareholders is to ensure interalia that their
directors will maximize profit on their behalf; while the company auditor
ensures that there are no financial irregularities in the company and that
the directors produce a TRUE & FAIR view of the company’s financial
These are the tripartite system operate in Nigeria before the blue print on
corporate governance was launched. This serve as a means of checks and
balances to ensure that directors do not abuse their powers within the
The concept of corporate governance is wild but in this study it will be
limited to the public and corporate sector.
This concept can’t be defined in a simple and precise definition, but can
be described because it concerns spectrum of activities in a company.
Therefore corporate governance may be described as spectrum of
activities in companies which involve: ▪ The director and the formulation of strategy;
▪ Top executives decision making and action;
▪ The monitoring x supervision (control); and corporate accountability.
Therefore, it should provide mechanism for regulating directors duties in
order to restore them from abusing their powers and ensure that they act
in the best interest of the company in its board sense.
In this study, we look at the impact of corporate governance in relation to
public and corporate sector.
Corporate governance in public and corporate sector are of important to
corporation in terms of directing, executing, controlling and even decision
Therefore, their contribution in this study will be looked...
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