The Dilemma of the Shareholders under the Nigerian Company Law

Abstract

The Companies and Allied Matters Act[1] is currently the statute for regulating the registration and operation of all types of companies in Nigeria. Under the Act, shareholders are recognized as members of the company and the directors owe duties to both the company and shareholders. The directors therefore do not have any legal liability or power to embark on any other duty apart from their duties to the Company. Despite the provisions of the Companies and Allied Matters Act in relation to shareholders, there have been increasing incidences of abuses by directors and holders of managerial posts. This article seeks to examine the problems and prospects of shareholders under the law. From the research it has been discovered that the shareholders are not allowed to exercise their rights and there is not enough protection of the shareholders’ rights under law. Suggestions are proffered in that direction.

Keywords: Shareholders, Rights, Company, Directors and Meeting

[1] 1990, Cap C 20 Laws of the Federation 2010