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C.3.3 Weaknesses/Problems of Corporate Governance in Nigeria
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- C.3.4 Codes of Best Practices on Corporate Governance in Nigeria
- C.3.5 Compliance Requirements of Corporate Governance
| C.3.3 Weaknesses/Problems of Corporate Governance in Nigeria (i) Poor integration and development of information technology, ii) Independence and transparency of auditors, iii) Pressure from the government, iv) Board/management relationship, v) Disagreement between board and management giving rise to board squabbles, vi) Weak internal controls, vii) Passive shareholders, viii) Ineffective management information system, ix) Technical incompetence, x) Poor leadership, xi) Noncompliance with laid down internal controls and operational procedures, xii) Fraudulent and self-servicing practices among members of the board, 51 management and staff, etc. C.3.4 Codes of Best Practices on Corporate Governance in Nigeria In Nigeria, directors of companies owe certain duties to their company (these duties are included in Companies and Allied Matters Act, 1990). The Act also requires the directors of a company to present an annual report and accounts to the shareholders, this helps to make the directors accountable to all stakeholders (shareholders inclusive) of their company. In some countries, such as the UK, where laws on corporate governance are not strong, guidelines or codes of governance principles and practice have been issued. Inasmuch as these guidelines are voluntary, one major or unique aspect of it is that the guidelines are backed by major financial institutions, stock exchanges and investment organisations. The major areas covered by codes of corporate governance areas follows i) The role and responsibilities of the board of directors ii) The composition and balance of the board of directors iii) Financial reporting, narrative reporting and auditing iv) Directors' remuneration v) Risk management and internal control vi) Shareholders right vii) Corporate social responsibility and ethical behaviour by companies (business ethics) C.3.5 Compliance Requirements of Corporate Governance The corporate governance code requires that i) It supersedes any corporate governance codes before October 17. 2016. ii) It is mandatory for all public companies (listed or not listed all private companies that are holding companies or subsidiaries of the public companies, and all private companies (with more than 8 employees) that file returns to any regulatory authority other than the Federal Inland Revenue Service and the Corporate Affairs Commission. iii) It sets the minimum number of members on aboard of directors at 8, this is a revision from the SEC Corporate Governance Code and Code of Corporate Governance for Banks and Discount Houses in Nigeria which provided fora minimum of covering periods beginning on or after 17 October 2016 and an earlier application Would be permitted. iv) Companies are required to comply with the provisions of the Code in any annual reports covering periods beginning on or after 17 October 2016 and an earlier application would be permitted. Download 3.37 Mb. Share with your friends:
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