Corporate Governance Failures: Lessons From Major Scandals “A Critical Study Of Systemic Lapses, Regulatory Oversight, And The Evolution Of Governance Norms In India”
- IJLLR Journal
- May 11, 2025
- 1 min read
Adv. Barkha Gautam, Department of Law, IILM University
ABSTRACT
This research paper examines major corporate governance failures by analyzing four influential cases that have had profound regulatory and managerial repercussions globally, including the Satyam scandal, the IL&FS crisis, the Enron scandal (as a reference framework for comparing governance breakdowns), and broader United States corporate failures that precipitated the Sarbanes–Oxley Act. Using a structural‐functional approach (Lokanan, 2024) and insights from post-scandal analyses (Narayanaswamy, Raghunandan and Rama, 2015; Arora, 2020), the study critically evaluates the root causes of these scandals and the resultant regulatory responses. Key factors such as lapses in internal controls, board deficiencies, cultural misalignments, and external oversight failures are scrutinized. Subsequently, the paper develops a framework for future prevention of similar corporate governance failures by synthesizing expert recommendations, including enhancing transparency, ensuring audit committee independence, and fostering a culture of ethical behavior. The findings are anticipated to benefit postgraduate corporate governance students, regulators, and scholars seeking a comprehensive understanding of the failures and necessary reforms in the corporate governance landscape.
Keynote This paper analyzes the corporate governance failures in the IL&FS and Satyam scandals, highlighting systemic lapses, weak regulatory oversight, and governance loopholes. It examines how these crises exposed flaws in board accountability and auditing practices, leading to significant legal and policy reforms in India. The study underscores the evolving standards of corporate governance and suggests measures for stronger compliance and investor protection.
