CORPORATE GOVERNANCE: THE TURNING POINTS - UBA Plc

The GMD’s Inspirational LectureIt was the perceived abuse or misuse of this enormous power onthe part of managers that originated the concerns aboutgovernance issues.In paragraph 1.1. of the introduction to the CBN “Code ofCorporate Governance for Banks in Nigeria Post Consolidation”, itwas stated:Financial scandals around the world and the recent collapseof major corporate institutions in the USA and Europe havebrought to the fore, once again, the need for the practice ofgood corporate governance, which is a system by whichcorporations are governed and controlled with a view toincreasing shareholder value and meeting the expectationsof the other stakeholders.As implied in the above statement, the concern about corporategovernance did not start recently 7 . Actually, it can be traced tothe events which culminated in the establishment of the first-everSecurities & Exchange Commission (SEC), the United States ofAmerica Securities & Exchange Commission as a measure to curbthe abuses inherent in laissez faire capitalism which before thenbrooked no outside or governmental interference in themanagement of businesses. This event was the U.S GreatDepression of the 1930s, which was largely blamed on corporatemismanagement. As a direct consequence of this event, the U.S.SEC was established in 1934 to reform and regulate corporateownership and control.7 Narayan N.R. Murthy (Chairman, Infosys Technologies Limited): ‘Good Corporate Governance – A Checklistor a mindset? Robert P. Maxon Lecture, George Washington University, Feb. 06, 200610 | P age