Corporate lawyer on the need to review corporate governance
Corporate Governance is an instrument for regulating
and controlling the market and market forces by the
government of There are many factors like
globalisation, technology, open market operation and
population are responsible for the frequent changes
and fickleness in the market and it is the dire need
that government must take serious initiatives to avoid
Satyam like episodes.India.
To averse the negative impact of corporate activities on
society and market there is a need to review the
Companies Act 2013. Stakeholders have raised
concerns over various provisions of the new legislation
and the Corporate Affairs Ministry has also held
discussions with them to address the concerns.
"Section 462 of the Act envisages relaxations in the
form of not applying some provisions or applying them
with exceptions or modifications to specific
class/classes of companies"- India is bit slow in
establishing corporate governance principles. The
Companies Bill includes a number of new provisions
aimed at improving the governance of public
companies. The foundation of the Indian corporate
governance model is influenced by the UK's
governance model. Despite significant differences in
the corporate structure of the two countries why India
adopted the UK model is really a big concern.
The Securities and Exchange Board of India (SEBI), recently
issued a consultative paper on the review of Corporate
Governance. SEBI goes on to propose making radical
changes like the appointment of independent directors by
minority shareholders and he/she must receive
compulsory training and must pass a qualifying
examinations and the adoption of principle based
"There is a need for appropriate training in a market as
the nature of Indian economy remained closed for
decades. To maintain transparency in the market and
to invite foreign investors. No one would like to take
interest in the instable and uncontrolled market, here
forth a regulated and universal corporate governance
model is the demand of current and evolving market.
The recent SEBI proposals that he adoption of a
corporate governance model should not be based on
UK's model as the UK-based concepts should be
adopted cautiously given the radical nature of certain
proposals." - Kislay Pandey- Corporate Lawyer, the
Supreme court of India.
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