A comparative analysis of codes of corporate governance and their impact on the boards of public companies in Nigeria and South Africa
Author Akin Olawale Oluwadayisi
Affiliations: BL ACIArb FIPMD LLM PhD and Notary Public, Lecturer, Department of Commercial Law, Faculty of Law, Adekunle Ajasin University, Akungba Akoko, Ondo State, Nigeria
Source: Journal of Comparative Law in Africa, Volume 7 Issue 1, p. 30 – 62
The growth of the economy of any nation requires that public companies, which dominate the securities sector, are strong financially, and also requires that the modality for their governance and operations should accord with acceptable and beneficial standards. Corporate regulatory bodies prescribe codes of corporate governance (CCG) that regulate the daily activities and performance of corporate entities. However, it appears that despite the introduction of CCG in Nigeria and South Africa, public companies are yet to deliver the desired results, due to noncompliance, enforcement challenges and a lack of internal mechanisms to implement the spirit and content of CCG. This research provides a comparative analysis of boards and the compliance level of public companies in Nigeria and South Africa. The research methodology adopts a combination of doctrinal legal research and qualitative analysis. The research aims to discover how the two countries can benefit from each other. The objectives include determining the level of knowledge of CCG, the level of accountability of boards, the level of responsibility, and enforcement and compliance levels. The research identifies the gaps in the law and practice, while offering solutions on how best to apply and enforce the codes in the two countries.