GENERAL INTRODUCTION TO THE STUDY
Generally speaking, a shareholder is a part owner of any company who is also entitled to take part in the decision making of the company. SEC provides that the shareholder is also entitled to access information regarding to performance or otherwise of the company as it is contained in its yearly annual report. There is no doubt that a shareholder benefits favourably in form of turnovers and profits, otherwise known as dividends whenever the company is doing well.
Corporations are of great consequence in the world today because they play a fundamental role in wealth creation1 as the main vehicles through which economic activities are undertaken. Finance is the main source of corporate power, and an important source of finance for corporate entities is provided through the equity investments of shareholders. Shareholders will, however, only invest where their rights are protected by the law. Hence, it is necessary to investigate the existing frameworks for investor protection in developing countries. Before proceeding with this investigation, it is perhaps important to note the different classes of shareholders, as this will help put this investigation into perspective
When an individual or a group of persons purchase shares in a company, they become shareholders of that particular company. In Nigeria, there are over twenty million shareholders who own shares in public and private companies. A shareholder is a part owner of a company and is entitled to take part in making decisions for the running of the company.
