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