PRACTICE OF MANAGEMENT CONTRACT IN CORPORATE GOVERNANCE UNDER NIGERIAN LAW

Abstract

The practice of management contract is relatively a novelty in corporate governance. The practice has grown popularity and acceptability over the years. While its relevance cannot be under estimated, concerns have been expressed that the practice has corrosive effect on the powers of the General Meeting of the company who are the owners of the company with the possibility of attracting legal liability to the company which will affect the shareholder interest by dwindling the prospects of dividends. This paper is therefore an appraisal of the corporate practice of the relevance of management contract. The research adopts the non doctrinal research methodology culminating in examination of both primary and secondary sources of law. The research concluded with the recommendation a corporate decision to cede management of the company to outsiders in the form of management contractors must involve the shareholders in a general meeting.