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EFFECTIVE CORPORATE GOVERNANCE AND MANAGEMENT IN NIGERIA AN ANALYSIS
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Magdi and Nadereh (2002) stress that corporate governance is about ensuring that the business is run well and investors receive a fair return. Organization for Economics and Co-operation
Development (OECD) (1999) provides a more encompassing definition of corporate governance. It defines corporate governance as the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company‟s objectives are set and the means of attaining those objectives and monitoring performance. This definition is in line with the submissions of Wolfensohn (1999) Uche (2004) and Akinsulire (2006).
Corporate governance involves a system by which governing institutions and all other organizations relate to their communities and stakeholders to improve their quality of life (Ato, 2002). Corporate governance is therefore important to ensure transparency, accountability and
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