An Analysis Of Corporate Governance In Startups

Muskan Sharma, Amity Law School, Amity University, Noida

1. PREFACE

Since time immemorial social responsibility plays a significant role in shaping molding and helping society. Corporate Social Responsibility is one of them. Man is a social animal. He lives in a society depending upon others. Social Responsibility comes from the moral and social values of an individual, Great Greek Philosopher Aristotle rightly remarked “Man being a social animal lives in a society. He cannot be made isolated or he cannot isolate others, because there interdependent to each other.” Hence, Social Responsibility and Corporate Social Responsibility are the two sides of the same coin. In a society like ours, the big business houses have been playing a significant role at the time of pandemic and in normalcy.

1.1.Introduction

Corporate Governance is very important to all companies whether startups, mature companies, private companies, public companies, listed public companies, NGO etc. There are, however, some differences between CG for large companies and CG for Startups.

Corporate Governance is an important tool for company management, survival and profitability that help determine their character, health and how much they go to improve shareholder wealth.

Unlike a listed company which has independent directors who may call out instancesof misgovernance or poor practices, startups and private companies consist largelyof investor board members, whose job is to protect their investment and interests andthe value of their shares.