GASPRO International Journal of Eminent Scholars

ABSTRACT

The creation of institutions by government to regulate the activities of companies is validated by the 1999 Constitution of the Federal Republic of Nigeria. Specifically, section 16(3) of the Constitution provides that: “A body shall be set up by Act of the National Assembly which shall have power: To review from time to time, the ownership and control of business enterprises operating in Nigeria and make recommendations to the president on same and to administer any law for the regulation of the ownership and control of such enterprises”. On the whole, therefore, regulation of companies through the use of institutions is the process or means of overseeing, supervising and controlling externally, the activities enterprises carried out daily by their directors. Such agencies reviewed in this work include: Corporate Affairs Commission (CAC), Security and Exchange Commission (SEC), Nigerian Investment and Promotion Commission (NIPC) and the Court. Their powers and functions are outlined as stated in the Acts. The functions however had not been performed creditably which is evidenced by cases of fraud, impropriety, failure in businesses and brief case companies. It was recommended that there should be a constant review of the regulations and also the various institutions should be more firm in their supervisory roles as demanded by the law.

KEYWORDS: Institutional Framework, Control of Companies, Corporate Affairs Commission, Securities and Exchange Commission, Investment Promotion Commission and Nigeria