Nishant Gulyani, LLM, Jindal Global Law School, Sonipat, Haryana
ABSTRACT
Corporate Governance means the set of rules, regulations, or principles that govern and control a company. The term corporate governance itself explains its meaning that it regulates the working of a corporate. It primarily involves stabilizing the interest of the company’s shareholders, financiers, executive officers, suppliers, customers, the government, and the community. Corporate governance has become a prominent subject of debate in India recently. Corporate India's focus has shifted from simple ‘management' to 'governance,' and now to 'successful governance,' as India Inc. has risen by great strides. Given the unique hurdles that India Inc. experiences as a result of the high prevalence of family-run companies, there is an urgent necessity to transition from the 'King' and 'Kingdom' models of governance (where the promoter family's personal benefits come first) to the 'Custodian' model of governance. While some proponents have pushed hard to build a "democratic-righteous rule”, some are still hesitant to give up authority, fearing that it will lead to their reign being abdicated. In this essay, an attempt has been made to explain the meaning, importance, and legal framework of corporate governance vis a vis abuse of corporate governance in Indian promoter-driven companies.
Keywords: Abuse, Governance, Management, Promoter driven, Shareholders.
