Going Virtual: Using Some Common Law World Initiatives to Update the Nigerian Law on Corporate Democracy

Abstract

This paper proposes a reform of Nigerian company law to integrate the Internet into the corporate governance scheme. In so doing, the paper examines reforms in some common law countries, especially the United States (the state of Delaware), Canada and the United Kingdom, highlighting to policy- and law-makers key areas they may focus on in the Nigerian reform. It emphasizes the need for a reform that will preserve extant rights, liberalize participation and induce transmission of information at a cost that the shareholders can afford. While noting the challenges such a reform may face in the Nigerian context, the paper proposes the type of Internet-related reform that may work well for Nigeria at present. It makes a case for the reform's relevance, given the government's commitment to liberalize entry into the telecommunications industry and to promote competition. The paper also notes that the exponential increase in the Internet penetration rate in Nigeria signals the desirability of a reform in the direction the paper proposes.