AN EVALUATION OF THE SHAREHOLDERS RIGHTS AND RESPONSIBILITIES IN CORPORATE GOVERNANCE IN NIGERIA

Abstract

Shareholders' rights and responsibilities are a very germane and relevant aspect of corporate governance. Shareholders play a crucial role in the affairs of companies as they are, in the actual sense, the real owners of companies and possess enormous powers to determine who becomes a director or not through their votes. By virtue of their investments in the company, shareholders are generally entitled to profits accruing from the business of the company. They have powers to make certain decisions, and also play very important role in the governance of the company. The directors of the company are answerable and accountable to the shareholders, and must carry out their responsibilities in the overall interest of the company. This article critically examined the shareholders' rights and interests, as well as their roles in corporate governance in Nigeria. The researchers employed doctrinal research methodology in analyzing the respective ways in which shareholders shape and influence the direction and governance of companies via their rights and responsibilities. Findings in the study revealed that weak and limitations in the legal and regulatory frameworks, difficulty in accessing accurate and timely information about corporate affairs, as well as lack of transparency in the corporate system are some of the challenges bedeviling the rights and responsibilities of shareholders in Nigeria. The study ended with recommendations centered on strengthening and granting enough protection to the shareholders' rights in Nigeria under the law, ensuring timely access to information, openness or transparency in the corporate system among other things.