Proxy Advisory Industry In India
- IJLLR Journal
- Feb 17
- 1 min read
Lehar Saini, Symbiosis Law School, Hyderabad
ABSTRACT
Over the past few years, the framework of corporate governance has developed and transformed significantly in response to the rising participation and contribution of the shareholders in a company. With such evolution, there has also been a revolution in the importance given to shareholders and their voting rights. The invoking of rights of the shareholders, investors also necessitates the need for corporate governance. This has led to the rise in the industry of proxy advisors. The latest reforms in the legislative and statutory framework for regulating the shareholders and their voting rights has simultaneously laid emphasis on the proxy advisory industry and their role in a company. They primarily counsel the shareholders on the manner in which they should preferably vote their shares in the company’s shareholder meetings as per the existing scenario and the varying objectives of the company. Across numerous nations the industry of proxy advisors is either free from oversight and regulations or is substantially governed via ordinances and notifications from time to time as required. In the case of India, the industry of proxy advisors has majorly had an autonomous legislative position with bare minimum regulations in place. However, the adoption of proxy advisors has also shed light on numerous red flags, uncovering vulnerabilities in the prevailing framework of corporate governance. In the course of this research paper, the researchers aim at discussing the nature, legislative framework, hurdles encountered and also intend to examine the position of India with respect to the proxy advisory industry.
Keywords: Corporate Governance, Legislative Framework, Proxy Advisory Industry, Shareholders, Voting Rights.
