Corporate Governance Through The Eyes Of A Minority Shareholder

Adv Aakanksha Milind Alai, LLM, Modern Law College, Pune

ABSTRACT

Corporate governance regulations and norms are increasingly being adopted by developing countries like India from their developed counterparts. These regulations are then tailored and integrated into the Indian corporate law framework to suit the country's unique demographics. The significance of corporate governance has grown substantially over time, emphasizing the need to foster a culture of awareness, transparency, and openness in the corporate sector. Corporate law primarily serves two purposes: providing organizational structure and managing conflicts among stakeholders.

India often sees concentrated shareholding due to a high number of promoter or family-driven businesses. Consequently, minority shareholders have limited influence on company operations, leading to potential neglect of their interests. This paper aims to explore the challenges of majority-minority dynamics in India and the associated issues stemming from this imbalance.

Keywords: Concentrated shareholding, outsider model of corporate governance, insider model of corporate governance, agency problems