THE MANAGEMENT OF BANKS AND THE RIGHTS OF SHAREHOLDERS UNDER THE ASSET MANAGEMENT CORPORATION OF NIGERIA

Abstract

The study examined the intricate relationships between the asset management corporation of Nigeria (AMCON) bank management and shareholders rights. The management of banks and the protection of shareholder rights under the Asset Management Corporation of Nigeria (AMCON) are fundamental to ensuring the stability and resilience of the Nigerian financial sector. Within the years under review of this study, the banking industry, as well as Nigeria economy was characterized by unprecedented financial and economic crisis, which led to the effect of the crisis of the stock market collapsed by 70 percent in 2008-2009 and many Nigeria banks sustained huge losses, particularly as a result of their exposure to the capital market and down to stream oil and gas sector. Based on these problems in the banking industry and the effect of globalization it influences the interest in this study. The general objective of the study is to determine the present of the law on Asset Management of Bank and the Right of Shareholders. The research is interdisciplinary in scope and addresses both legal and social economic issues. To ascertain information for this research work, doctrinaire research methodology was used, while the secondary date element of empirical research where data from Asset Management Corporation of Nigeria (AMCON) was used as source of information to illustrate the work. The findings stated that the right of shareholders depended largely on provisions in a corporation charter and by-law; that shareholders in corporation are shielded from personal liberality for debts and obligations of the corporation, and also, that the consolidation programmed were necessitated by the need to strengthen the banks, thereby playing pivotal roles in driving development across the sector of the economy. The study recommended adequate practices of banking laws and regulations within the industry, risk focused and rule based regulatory framework, Strick enforcement of corporate governance principles in banking, expeditions process for rendition of returns by banks and other financial institutions through to eases and finally the revision and updating of relevant laws for effective corporate governance and ensuring greater transparency and accountability in the implementation of banking laws and regulation.