THE RESOLUTION OF CORPORATE GOVERNANCE DISPUTES THROUGH ALTERNATIVE DISPUTE RESOLUTION

Abstract

The challenges of delay, cost and restrictive outcomes of litigation in Nigeria have made it largely 
inadequate for the resolution of Corporate Governance Disputes (CGD). Previous studies focused 
on Alternative Dispute Resolution (ADR) generally as a complement to litigation while glossing 
over the suitability of ADR for specialized disputes in areas such as corporate governance. This 
paper therefore, examines the potentials for the resolution of CGD through ADR, and the practice 
and procedure of specific ADR methods for their resolution, in order to determine their adequacy 
or otherwise.
This paper adopts the Access to justice and the Stakeholder’s theories for the resolution of CGD. 
The research methodology adopted is doctrinal. Primary sources include the Constitution of the 
Federal Republic of Nigeria, 1999 as amended, Companies and Allied Matters Act (CAMA), High 
Court Civil Procedure Rules of Lagos State and the Federal Capital Territory, Federal High Court 
Rules, National Industrial Court of Nigeria ADR Centre Instrument and Rules 2015, Court of 
Appeal Rules and the National Code on Corporate Governance (NCCG) 2018. Decisions of 
Nigerian and foreign courts, government reports and policies are also reviewed. Secondary data 
including journal articles, legal texts, report of the British Council “Justice for All” Project, 
newspaper reports, internet materials, and monographs are examined.
The advantages of ADR make it suitable for the resolution of CGD. ADR is applicable to the 
resolution of CGD, such as, boardroom disputes, employee/employer, intra- employee disputes 
and shareholder activism. As the Multi Door Court Houses are not widely used despite their 
potentials, the resolution of Corporate Governance Disputes through Alternative Dispute 
Resolution in Nigeria is underutilized. The guidelines for the resolution of corporate governance 
disputes need to be reviewed to include the adoption of Alternative Dispute Resolution.