Critical Essay on- Redefining Accountability of Directors: Towards Corporate Governance and Fairness

Corporate Law

The term ‘corporate governance’ is the new talk of the town, and this is because no investor would be comfortable investing in a company that is not backed by sound policies, stable system and overall confidence shaping environment. If investors have faith in the company and is inspired by its activities, the level of investor’s trust is a recipe for success for a company to keep them going. Sound corporate governance is what propels our economy into a market based one. The importance of corporate governance has taken flight in our country, more so because of our exposure and intermingling with international agencies. Through this essay, the researcher has analysed, appreciated, and recognized four initiatives introduced to deepen the roots of corporate governance in our country- Confederation of Industry Code, Kumar Mangalam Committee Report, Naresh Chandra Committee Report and Narayan Murthy Committee Report. Subsequently, the researcher has laid emphasis on critically analysing the status of corporate governance in India and the current challenges that we face in the thirst of its effective implementation. Lastly, the researcher has also recognized the value that shareholder activism can play in transforming corporate governance. In furtherance of this, the SEBI has introduced the Investor Education Protection Fund to arm shareholders with information and knowledge befitting them to take a stand.

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