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VOL. 5, ISSUE 4 (2023)
Challenges to good corporate governance for the one-person company in Nigeria
Authors
Anayochukwu Precious Paschal Mbagwu
Abstract
The objective of this
study is to examine the challenges to good corporate governance for the
one-person company (OPC) in Nigeria and to proffer solutions on the way
forward. As a form of business organisation, the OPC was introduced in Nigeria
via the Companies and Allied Matters Act, 2020, thus making it possible for anyone
of full age to incorporate and run a company as a single member, without the
necessity of having to do so in conjunction with other persons. As In many
countries of the world, OPCs in Nigeria have proved very useful for promoting
entrepreneurial effort, as well as the development of Micro, Small and Medium
Enterprises. Indeed, OPCs offer enormous advantages, which underlies the need
to harness the possibilities inherent in them. In terms of quick
decision-making, the concentration of executive and supervisory authority in
the sole director holds some advantages; nevertheless, vesting too much
corporate powers in one person may lead to abuses such as incomplete
disclosures and other forms of infractions that are antithetical to the
principles of corporate governance. In the light of the foregoing, this
article, which is based on the doctrinal method of research, calls for a simple
system of governance that will cater for the peculiarities of the OPC. In
sustaining the culture of corporate governance, it is recommended that interventions
by state authorities or non-governmental agencies may take the form of
programmes that support capacity building. Moreover, considering the positive impact
of this type of enterprise in the Nigerian economy, institutions like the
Corporate Affairs Commission (CAC) and other regulatory bodies are enjoined to devote
platforms for promoting the establishment of internal controls among OPCs, as
this is a requisite condition for maintaining financial discipline, curtailing
fraud and managing growth.
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Pages:49-54
How to cite this article:
Anayochukwu Precious Paschal Mbagwu "Challenges to good corporate governance for the one-person company in Nigeria". International Journal of Law, Policy and Social Review, Vol 5, Issue 4, 2023, Pages 49-54
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