Corporate Governance Codes And Guidelines: Assessing Compliance And Implementation In Addressing The Interests Of Stakeholders In The Firms

Rishabh Dusad, UG Scholar, Unitedworld School of Law & 5th Year BBA LLB Student, Karnavati University, Gujarat

ABSTRACT

The period of economic expansion in India, which occurred in 1992, coincided with the advent of globalization, marking the first time there was a pressing need to adopt corporate governance norms aligned with international standards. The Ministry of Corporate Affairs established a benchmark for companies to adhere to voluntary guidelines for corporate governance, while the Securities and Exchange Board of India (SEBI) and the Companies Act, 2013, delineated mandatory provisions for corporate governance. This study delves into the current legal framework surrounding corporate governance and the requirements imposed on listed companies. It elucidates how the integration of corporate governance guidelines has facilitated the growth of large corporations. This paper contributes to the existing body of literature by conducting a review of the application of governance codes and guidelines by companies and applying doctrinal research. It is concluded that the Companies Act, 2013, along with other regulatory bodies in India, has established mandatory provisions for corporate governance. The study evaluates the extent to which these provisions are adhered to by companies. Furthermore, the study briefly addresses the benefits to stakeholders resulting from the implementation of governance standards mandated by SEBI, and it was found that a few companies have experienced significant growth as a result. However, it was also noted that some Public Sector Undertakings (PSUs) have struggled to meet these standards. The study highlights the importance of corporate governance within companies and underscores the need for its effective implementation.

Keywords: corporate governance, whistle blower, corporation, committee, director, money-laundering