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The power of meetings in corporate governance

Author: 
Dr Kathleen Okafor
Subject Area: 
Social Sciences and Humanities
Abstract: 

As a juristicyet inanimate person, the company exercises its powers through the members in general meeting, the board of directors and committees set up by the company. It is at meetings that members exercise ultimate control of the company, give directors the opportunity to explain results and applaud or denounce managements. The humongous power of especially transnational companies makes the conduct of their meetings a very crucial factor not only in corporate governance or social responsibilities but also in national development. Most corporate actors donot adequately graspthe rules on company decision-making processes to participate effectively and legally at meetings. The lapses and ineffective decision making were manifested in the phenomenal scandals of Enron 2001 & Worldcom, 2005 as well as Nigerian bank failures in 2005 causing job losses of multitudes of employees, and large scale diminution of stakeholders. Furthermore, the global reach of many companies across national borders makes it necessary to restate the laws on company meetings so as to enlighten local and foreign investors, educate company administrators, and also reduce unnecessary family feuds, litigation and company disharmony. Consequently, this paper attempts to provide a compendium of statutory, common law and judicial dictates on company meetings especially as regards investors’ protection & controls. This paper also serves as a compass for navigating the murky waters of decision making in order to enhance managerial value through shareholder-centric governance.

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