Role Of Company Law In Promoting Corporate Governance
- IJLLR Journal
- Mar 12
- 1 min read
Neema Verma, LLB, Jharkhand Rai University, Ranchi, Jharkhand
ABSTRACT
Corporate governance plays an important role in helping businesses run smoothly and create value for stakeholders including shareholders. This study examines how company laws supports and shapes corporate governance by comparing different legal systems. It explains the concept and importance of corporate governance and highlights the close relationship between company law and governance practices.
The research evaluate how company law contributes to better corporate governance and identifies the challenges faced by existing legal frameworks.
Several weaknesses and gaps in these legal systems are identified and possible solutions are discussed. The study also looks at how these findings affect both corporate governance theory and real world practice, and it provides recommendations for improving corporate governance laws.
The findings show that strong legal framework are essential for promoting good corporate governance. However, corporate governance is complex, and there is no single model that works for all countries. Each nation has developed its own legal system based on its specific needs and challenges.
Despite having laws in place, problems such as limited stakeholder involvement, week enforcement, and lack of transparency still exist.
The study suggests that these issues can be addressed by strengthening disclosure requirements, encouraging greater stakeholder participation, and improving enforcement mechanisms. Overall, this research contributes to a better understanding of the role of company law in corporate governance and offers directions for future research.
Keywords: Company law, corporate Governance, Legal Framework, Transparency
