1.1BACKGROUND 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 Petroleum.
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 managing.
Although the concept of corporate governance is well recognized in mostadvance 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 performance.
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 corporation.
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 making.
Therefore, their contribution in this study will be looked...