AN APPRAISAL OF THE REGULATORY FRAMEWORK FOR PREFERENCE SHARES ADMINISTRATION: A SOJOURN FROM NIGERIA TO BRAZIL

Abstract

In corporate law financial system, the issuance of preference shares is common, and the holders of such shares have accrued special rights. Preference shareholding is based on the same concept all over the world but form, substance, and procedure it takes depend on the law of the country being considered. This article considers the concept of preference shares in Nigeria and Brazil putting into consideration the corporate laws guiding such practice. It observes that though there are differences in the provisions of the laws of these two jurisdictions, however, there are areas of convergence and divergence between the two jurisdictions and in the broader context of global working of corporate system, the concept of preference shares is the same all over the world. It brings out areas of convergence and divergence between the two jurisdictions and in the broader context of the global working of corporate system. The company's ownership is known through shareholding. There are various classes of company shareholding; these classes give the holders different benefits apart from the universal purpose of receiving dividends. This article discusses preference shares as a foundation for shareholding through legal and regulatory frameworks governing companies and an examination of the concept in Nigerian and Brazilian corporate law.