Corporate Governance And Protection Of Stakeholders Rights And Interests

Mayank Raj, University of Petroleum and Energy Studies

ABSTRACT

The evolution of corporate governance has increasingly underscored the importance of safeguarding stakeholders' rights and interests. In India, a rapidly growing economy with a diverse corporate landscape, the interplay between corporate governance mechanisms and stakeholder protection is of paramount importance. This research paper delves into the multifaceted relationship between corporate governance and safeguarding the interests and rights of stakeholders.

The collection of procedures, norms, regulations, statutes, and organizations that influence how a company is run, managed, and controlled is referred to as corporate governance. It provides the framework for guaranteeing openness, responsibility, and equity in a company's interactions with its different constituents, such as investors, staff members, creditors, and the general public. The Companies Act of 2013 (the Act) is the main piece of legislation in India that regulates corporate governance procedures. The Act places a strong emphasis on safeguarding the rights and interests of stakeholders, which encourages long-term value generation and sustainable business practices.

For India's business environment to grow sustainably, corporate governance and protecting stakeholders' rights and interests are essential. While the Companies Act of 2013 provides a broad regulatory framework with the objective of fostering transparency, accountability, and fairness, there is an urgent need for more robust enforcement mechanisms and more stakeholder engagement in order to address the prevailing concerns and criticisms. With the goal of providing a greater knowledge of the topic and suggesting potential reforms and best practices to increase stakeholder value and promote moral business conduct, this research aims to explore the intricate interactions that exist between corporate governance and stakeholder protection.