Introduction
1.1 Background To Study
Investors who purchase corporate stocks enjoy a number of rights pertaining to their ownership the rights of shareholders depends largely on provisions in a corporation charter and by- laws. These are the first document which a share holder should consult when determining his or her rights in a corporation.
The recent experience from the global financial crisis has further underscored the imperatives of countries to embark on banking reforms on a regular basis. As we are all aware the world economy was hit by an unprecedented financial and economic crisis in 2007-2009 that resulted in a global recession. This crisis led to the collapse of many world-renowned financial institutions and even caused an entire nation to be rendered bankrupt.
Therefore, it is on this background that a painstaking surgery will be made on this dissertation, the Management of Banks and the Right of Shareholders under the Asset Management Corporation of Nigeria which is designed to take care of current development in the law of banking so as to meet the challenges of the 21st century and to help to stimulate the recovery of the financial system from the recent crisis by boosting the liquidity of troubled banks in which the central bank of Nigeria was forced to intervene and increase access to restructuring/ refinancing opportunities for borrowers.
1.2 Statement Of Problem
The recent experience from the global financial crisis has further underscored the imperatives of countries to embark on banking reforms on a regular basis. As we are all aware, the world economy was hit by an unprecedented financial and economic crisis in 2007-2009 that resulted in a global recession. This crisis led to the collapse of many world-renowned financial institutions and even caused an entire nation to be rendered bankrupt.
In Nigeria, the economy faltered and was hit by the second round effect of the crisis of the stock market collapsed by 70 percent in 2008-2009 and many Nigerian banks sustained huge losses, particularly as a result of their exposure to the capital market and down-stream oil and gas sector.
Therefore, the Central Bank of Nigeria (C.B.N) had to rescue 8 of the banks through capital and liquidity injections, as well as removal of their top executives and consequent prosecution of those who committed some infraction. These actions became necessary to restore confidence and security in the banking system.
1.3 Aims And Objectives
The objective of this dissertation, the Management of Banks and the Right of Shareholders under the Asset Management Corporation of Nigeria is to examine the present state of the law on Asset management of banks and the right of shareholders.
The law of the above management of banks and the right of shareholders is to be found in the statutory law, reported decisions and dicta of judges, articles and journals and reports from the internet facilities.
This dissertation also aims at helping to stimulate the recovery of the financial system from recent crisis by boosting the liquidity of troubled banks through buying their non- performing loans, helping in the recapitalization of banks in which the CBN was forced to intervene and increase access to restructuring/refinancing opportunities for borrowers.
Banking reforms in Nigeria is an integral part of the country wide reform programme undertaken to reposition the Nigerian economy to achieve the objective of becoming one of the twenty (20) largest economies by the year 2020.
