CORPORATE DEMOCRACY AND SHAREHOLDERS’ RIGHTS: A COMPARATIVE STUDY OF PUBLIC COMPANIES IN NIGERIA AND SOUTH AFRICA

Abstract

Corporate democracy denotes the extent to which shareholders actively partake in corporate decision-making, influence board conduct, and hold the directors accountable for the management of corporate resources. In Nigeria, the legal frameworks governing shareholders’ rights and board governance have evolved significantly with the Companies and Allied Matters Act (CAMA) 2020, the Nigerian Code of Corporate Governance (NCCG) 2018, and Securities and Exchange Commission (SEC) providing mechanisms to enhance transparency, accountability, and participation. This article examines the practical realization of corporate democracy in Nigerian public companies by appraising the strength of shareholder rights, the structure and effectiveness of board governance frameworks, and the challenges faced in enforcing democratic corporate ideals. Using a comparative lens, the paper highlights global standards from jurisdictions such as the South Africa, identifying common principles and best practices. Findings reveal that although Nigerian regulations adopt international practice, corporate democracy remains limited by weak shareholder activism, board dominance, ownership concentration, and unsatisfactory enforcement. The article proposes reforms for enhanced shareholder empowerment, improved board accountability, and stronger regulatory oversight. It examines the concept of corporate democracy in Nigeria, with a special focus on how it can promote good corporate governance, efficient corporate management and corporate sovereignty. It also investigated the distribution of powers between the factions within the company structure. Doctrinal research methodology was adopted in this research.