Separation Of Corporate Ownership And Corporate Management: A Critical Analysis
- IJLLR Journal
- Jun 10
- 1 min read
Nidhi Ajay Tiwari, B.A.LL.B. (Hons), Maharashtra National Law University, Nagpur
ABSTRACT
The separation between those who own companies and those who manage them has shaped the very foundation of modern corporate life. This divide between shareholders who invest their capital and managers who make day- to-day decisions was meant to create efficiency and allow businesses to grow beyond the control of a single individual or family. But over time, this gap has grown into a space filled with tension, misaligned interests, and difficult questions about who truly holds power and responsibility in a corporation. This paper explores the fundamental divide between corporate ownership and management, examining how this separation shapes the dynamics of modern corporations. It outlines the key differences between owners and managers, critically analyzes the advantages and disadvantages of this structure, and evaluates the statutory provisions that govern it. By blending legal insight with practical realities, the study offers a sharp, focused critique of how power, responsibility, and control are distributed in today’s corporate landscape. At the same time, it explores the tools we’ve created, like corporate governance laws, active shareholders, and ethical boards, to try to keep things in check. Yet, these tools are far from perfect. This analysis invites us to rethink whether separating ownership from control is still serving us, or whether it’s time to reimagine how trust, transparency, and accountability can be restored at the heart of corporate leadership.
