Corporate Governance

Abstract

The African Corporate environment has witnessed significant controversies of immense dimension erupting from the various challenges of underdevelopment characterized by the poor cultures associated with inter and intra organizational conflicts, hi-tech corruption, dishonesty, selfishness, disregard for law and order, betrayal of trust, abuse of privileges and positions of authority and responsibility; disregard for the rights and privileges of others, disobedience to constituted authorities and official procedures established over the years to maintain corporate, economic and sect oral orderliness in commerce and industry.

The more rules, laws orders and procedures/provisions are made to guide, control and regulate the corporate environment in commerce and industry for corporate and economic orderliness and development the more the violatory loopholes, disobedience to rules and regulations, abuses and disregard to rules and regulations are initiated by the owners, directors and management of corporate bodies.

These acts of gross disobedience to laws and order abuse of positions and privileges, fraudulent tendencies in the management of corporate bodies both in the public and private sectors have resulted in disharmony, gross disregard for the interest of minority stakeholders in organizations, inefficiencies and ineffectiveness in the management of organizations, conflict of interests in organizations and between corporate bodies; Directors and management of firms, regulators and governments.

The end results of these anomalies in corporate management and governance, have been the failure and eventual collapse of a larger proportion of corporate entities in developing African countries and particularly in Nigeria where less than 20% of installed industrial capacity in functioning effectively.

Another significant consequence of this state of corporate disorder particularly in Nigeria is the high mortality rate of over 70% of corporate bodies particularly in the nerve centre of industrialization constituted by the medium and small scale industries, within 5years of their establishment and commencement of business.

One of the most potent instruments of tacking and resolving the challenges of corporate conflicts, mismanagement disorderliness worldwide is the establishment of a well entrenched “Code of Corporate Governance.”

In Nigeria, this instrument is written, established and required to be managed and enforced by the regulatory bodies supervising the main sectors of the economy representing the hub of corporate existence. The main issues concerned with the constitution management, enforcement and the state of compliance of corporate bodies with the codes of Corporate Governance is the main hub of this article. And the main focus of its contribution will be the absolute need to harmonize the structure, provision, management control, enforcement compliance, accountability and impositions of sanctions for breaches of the provisions of the main codes of corporate governance in Nigeria.