Corporate Governance in Nigeria: The Legal and Islamic Frameworks

This work analyses the adequacy of the legal and Islamic corporate governance frameworks in the context of the relationship between the directors, shareholders and stakeholders and proffer suggestions for reform. The increasing economic power of corporations and the implications of the separation of ownership from control have thrown up a number of interrelated problems. These include the failure of corporations to fulfill the genuine expectations and aspirations of shareholders and stakeholders as well. In Nigeria this is made worse by obsolete legislation, weak law enforcement mechanisms, lack of adherence to regulatory rules and near total absence of effective monitoring system. The study therefore proposed an improved regulatory framework in order to ensure that the interest of shareholders and stakeholders alike is protected. The study equally proffers a legislative and judicial activism approach in order to align corporate governance system in Nigeria with global best practices.