An examination of the remedies in construction contract litigation: A review of the court’s awarded reliefs
A share buyback occurs when a company repurchases its shares from its shareholders. It is a situation where a company is investing in itself. In the past, this had given room to unscrupulous managers and promoters of companies to perpetrate fraud by creating an artificial buoyancy of the shares of companies and encourage dangerous speculative trading of shares by buying back shares through loans and luring the unsuspecting general public into dealing in those shares under the erroneous financial health of the companies created by them.
Yet, share buyback could also serve as a legitimate corporate management tool to deliver more value to a company’s shareholders and stakeholders in the capital market. In fact, it could be positively employed by a company to achieve including but not limited to:
- returning surplus cash to shareholders;
- increasing the underlying share value;
- supporting the share prices during temporary weakness;
- achieving or maintaining a target capital structure;
- preventing or inhibiting unwelcome take-over bids.
For these and other positive uses, a share buyback mechanism can be deployed, the Companies and Allied Matters Act (CAMA) Cap C20 LFN, 2004 and the Securities and Exchange Commission (SEC) Rules allow companies albeit with restrictions to buy back their shares. Continue reading
The concept and use of plea bargain in Nigeria has caused much furore in recent years. This has been because of its use by the Economic and Financial Crimes Commission (EFCC) in dealing with cases of corruption by public officials and others holding offices of public trust.
To many, the practice conflicts with their sense of justice for the betraying thieves of the public’s finances or savings; It is incomprehensible to them how highly-placed thieves of many millions and billions of naira are allowed to get away with miserably small sentences in the name of plea bargain, while thieves of smaller sums or thieves of the same millions and billions of naira but without the high-level placement or connections bag the weighty sentences generally more commensurate to their offences. Consequently, many question the justifiability and legality of the practice, saying that it is alien to Nigerian statutes on criminal matters and downright unfair.
In this article, an examination of the arguments for and against the legality of the use of plea bargain in Nigeria shall be conducted with a view to taking a position on the matter at the end. Continue reading
Legal Audit As A Crucial Response To The Legal And Financial Uncertainties Faced By Organisations In The 21st Century
If we are left intact, we would try to fix the department to what it ought to be –effective, efficient and responsive to the public. I see myself as part of the solution. This audit is something we requested.
The term legal audit may sound unfamiliar in the Nigerian businesses due to the fact that the common man as well as the average organization is well acquainted with the term financial audit. Financial audit can be defined as the authentication of the financial statements or records of a company with the intention of expressing an audit opinion. It also means the critical investigation of a company’s financial records and documentation. Most importantly, businesses, with the exception of nonprofit organizations are run for the sole reason of maximizing profit and not for encouraging loss. Thus, financial audits are conducted with the aim of giving shareholders; board of directors and investors a clearer standpoint on the location of a company in the profit and loss margin. Presently, financial audit has become a house-hold name and a friend that helps organizations keep their businesses above sea level by giving them an accurate picture of the financial reliability of their organizations. In sum, financial audit creates awareness to organizations on their profit and loss margin while correcting errors in their financial statements. Continue reading
The AMCON Bill was signed into law on the 9th day of July, 2010 as an Act to establish the Asset Management Corporation of Nigeria for the purpose of efficiently resolving the non-performing loan assets of Banks in Nigeria and for related matters.
President Goodluck Jonathan in a brief speech delivered after the signing ceremony declared that AMCON would “help to stimulate the recovery of the financial system from the recent crisis by boosting the liquidity of troubled banks through buying their non-performing loans, helping in the recapitalization of banks in which the CBN was forced to intervene, and increase access to restructuring/ refinancing opportunities for borrowers”.
It would be recalled that as at the end of November, 2009, CBN Governor Sanusi Lamido Sanusi had sacked the chief executive officers and directors of eight of the Nation’s 25 banks for allegedly imperiling the financial health of their organizations. Sanusi had also disclosed that at the time, the rescued banks had an aggregate toxic assets’ portfolio in excess of N2Trillion. The act of the CBN Governor was perceived by many as an interventionist manovre to stem the haemorrhage that rocked the banking sector then. The AMCON Act could therefore be seen as a child born out of circumstance to ensure the affected banks remained a going concern.This write-up seeks to do an appraisal of the AMCON Act, with an examination of some of the salient provisions of the Act and ancillary issues. Continue reading
The potential of an economy to attract investment depends largely on the state of governance of the economy and the policy thrusts of the managers of the economy. The primary duty of the managers of an economy is to use and maximize the limited resources of the economy efficiently to achieve the objectives of the economy. Such is the case with companies or corporations.
Investor sentiments are a crucial element of success for any company because the financial strength of the equities of any company depends largely on investor confidence. If the investor confidence is high, the share price of the company soars. If the investor confidence weakens, the value of the stock plummets.
The management and administration of companies, otherwise called corporate governance impacts heavily on the investor confidence of stakeholders of the companies. Therefore, the quality of corporate governance is a key issue for the stakeholders in view of their investments in the companies. In recent years, corporate governance has received increased attention because of high-profile scandals involving abuse of corporate power and, in some cases, alleged criminal activity by corporate officers. Continue reading
The present Nigerian criminal justice system is part of Nigeria’s inheritance from colonial Britain. In fairness, it served the colonial power rather well. But with the transformation from colonialism to self governance, democracy, military rule and now a hybrid of civilian rule and democracy, the inherited system had come under severe strain to the extent that it can safely be said to be non functional or at least comatose
Bigamy was introduced into the body of the Nigeria criminal legal regime by the colonial powers like other incongruous legislations that are alien to our culture and traditions as Africans and particularly as Nigerians. Since this law found its way into Nigeria it has not been tested by any court of competent jurisdiction in Nigeria, this underscores its inconsistency with our culture as a people.
Recently in view of the dormancy of the provision for the crime of bigamy in our Criminal Codes Act and laws of the various states, Lagos State in its proactive nature expunged the unexploited provision from its Criminal Code Law, this discuss is to examine the said step taken by the Lagos State Legislatures and the extent of its consistency or otherwise with the constitution of the Federal Republic of Nigeria 1999 (as amended) or any other relevant laws in force in Nigeria. Continue reading
Force Majeure And Hardship: To What Extent Does Article 79 Of CISG Excuse Liability for Non Performance?
Force Majeure And Hardship: To What Extent Does Article 79 Of CISG Excuse Liability for Non Performance?
ABSTRACT: The fundamental underpinning of any International business contract is pacta sunt servanda, the assurances of the performances of the contract as agreed. However, circumstances are, when a supervening event, which was not within the contemplations of both parties at the time of concluding the contract, occurs to preclude a party from carrying out his assumed obligations under the contract. This fundamental change in circumstances has always been taken care of by the force majeure or hardship clause in a contract. With the coming into effect of the United Nations Convention on Contract for the Sale of Goods (CISG) and its being adopted as the choice of law regulating International business transactions on the sales of goods in modern time by parties, controversies have been stoked as to whether its Article 79 on changed circumstances incorporates the concepts of force majeure and hardship as a defence for non performance. It is the objective of this paper to determine whether Article 79 covers both concepts and examine the extent to which it will excuse liability in the event of non performance. Continue reading
An analysis of Enforcement of Judgments and Court Orders in the Nigerian Legal System
Enforcement is the last stage of the judicial process after the legal right, claim or interest has ended in a judgment or order which remains to be enforced. It is the process whereby a judgment or order of court is enforced or to which it is made effective according to law. Most judgments require compliance with their terms. It is only in the case of a declaratory judgment which merely declares what the right of a party is, without imposing any sanction on a defendant or directing either of the parties to do anything that execution is not called for or levied . Also execution will be totally unnecessary where there is voluntary compliance with the judgments and orders of the courts.
It is trite that every successful litigant is entitled to the fruit of his judgment. It is also a truism that the overriding function of the judicial process of enforcement is to enable the judgment creditor reap the fruits of his judgment with a view to obtaining for him due satisfaction, compensation, restitution, performance or compliance with what the court has granted by way of remedy or relief. The process of enforcement is broadly referred to as execution. Lord Denning aptly summarized the process thus :
Execution means quite simply the process for enforcing or giving effect to the judgment of the court… In case when execution was had by means of a Common Law writ, such as fieri facias; it was legal execution; when it was had by means of an equitable remedy, such as the appointment of a Receiver then it was equitable execution because it was the process for enforcing or giving effect to the judgment of the court. Continue reading