One of the drawbacks of the limited liability structure is that it encourages excessive risky behaviour. However, commercial risks have been considered to be the lifeblood of corporate activities, and some directors have been known to take undue advantage of this owner-shielding doctrine to the detriment of the creditors who had hoped on recourse to the funds of the company for the satisfaction of the debts owed them. This behaviour calls for a proper safeguard for the creditors and the public, which would entail that those directors who have conducted themselves improperly in regards to the affairs of the ailing company shall be banned from further acting as directors. The purpose of this paper is to examine the laws as regards the disqualification of directors in Nigeria vis-à-vis the provisions of the extant United Kingdom laws.
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UNILAG Law Review, (2020) Volume 4 Edition 1
About the Author
Prince Diarah Esq. had his Bachelors in Law at the University of Nigeria Nsukka, Enugu Campus in 2014. He is currently an LLM student at the Niger Delta University. He teaches Business Law in the Institute of Chartered Accountant of Nigeria (ICAN), Yenagoa. His contact information is: 08038064644; 09058233007; firstname.lastname@example.org.