An Appraisal of the Nature of Shares, the Shareholders' Rights and Liability under the Companies and Allied Matters Act, 2020

Nkolo, Ezechi Cyril (2023) An Appraisal of the Nature of Shares, the Shareholders' Rights and Liability under the Companies and Allied Matters Act, 2020. Ife Business Law Review, 5 (1). pp. 70-83. ISSN 2714-2922

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Abstract

Shares confer membership of a company on its holders with the corresponding rights and liabilities. However, the nature of shares, rights and liabilities of shareholders appears to be one of the recondite areas in corporate law. Consequently, the crux of this paper is to appraise the nature, rights and liabilities of shareholders under the Companies and Allied Matters Act. 2020. The paper copiously demonstrates shares as interest of a shareholder in a company measured by a sum of money as well as bundle of rights and liabilities. The extant Companies Act provides a galaxy of rights and liabilities of shareholders. The paper also discusses the numerous challenges/obstacles which shareholders face in the process of enforcing their rights. The paper highlights the need to reconsider and amend the provisions of the law to address these challenges. It notes the existing and highly commendable efforts under the Companies and Allied Matters Act 2020 particularly, the innovations pertaining to the right of a shareholder to be entitled to damages for any loss incurred on account of the breach of that right and the fact that erring directors are personally liable for damages to the aggrieved shareholders.

Item Type:	Article
Subjects:	K Law > K Law (General)
Divisions:	Faculty of Law, Arts and Social Sciences > School of Law
Depositing User:	Uchenna Eneogwe
Date Deposited:	28 May 2025 10:44
Last Modified:	28 May 2025 10:44
URI:	http://eprints.gouni.edu.ng/id/eprint/4666

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