The management of banks and the right of shareholders under the assets management corporation of Nigeria

The Asset management corporation of Nigeria Act seeks to establish the Asset Management Corporation of Nigeria for the purpose of efficiently resolving the non – performing loan assets of banks in Nigeria and for related matters. Within the years under review of this study, the banking industry, as well as Nigeria economy was characterized by unprecedented financial and economic crisis, which led to the 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. Based on these problems in the banking industry and the effect of globalization it influence the interest in this study. The general objective of the study is to determine the present state of the law on Asset Management of bank and the right of shareholders. The research is interdisciplinary in scope and addresses both legal and socio-economic issues. To ascertain information for this research work, doctrinaire research methodology was used, while the secondary data element of empirical research where data from Assets Management Corporation of Nigeria (AMCON) was used as source of information to illustrate the work. The findings stated that the right of shareholders depended largely on provisions in a corporation charter and by-law; that shareholders in a corporation are shielded from personal liability for debts and obligations of the corporation, and also, that the consolidation programme were necessitated by the need to strengthen the banks, thereby playing pivotal roles in driving development across the sector of the economy. The study recommended adequate practices of banking laws and regulations within the industry, risk – focused and rule based regulatory framework, strict enforcement of corporate governance principles in banking, expeditions process for rendition of returns by banks and other financial institutions through – efass and finally the revision and updating of relevant laws for effective corporate governance and ensuring greater transparency and accountability in the implementation of banking laws and regulations.