Company Law Synopsis.docx

DR. RAM MANOHAR LOHIYA NATIONAL LAW UNIVERSITY, LUCKNOW

PROJECT CORPORATE LAW SYNOPSIS on

Changing trends of Corporate Governance

Submitted To : Ms. Priya Anuragini

Submitted By : Shurbhi Yadav

Assistant Professor (Law)

Sem. VI, B.A.L.L.B. (H)

Dr. RMLNLU, Lucknow

Enrollment No.- 160101147

INTRODUCTION Corporate Governance basically denotes rule of law, transparency, accountability and protection of public interest in the management of a company’s affairs in the prevailing global, competitive and digital environment. Government provides necessary conditions, framework and environment to corporate to operate. Organization for Economic Cooperation and Development(OECD) Principles on Corporate Governance in May 1999. After 1990, the transition from central planning to market driven economies, the privatization of state-owned companies and the emerging private sector necessitated reforms in corporate governance. This need was further accentuated by the fall-out of the 1997 economic and financial crisis. Globalization of the market place has also impelled corporate to improve the quality of their governance. Nowadays, it is imperative that corporate governance standards are compatible with global standards which are much higher than those prevalent in India. A number of Indian companies are restructuring to become multinational by investing abroad and opening up their branches or subsidiaries. They are now competing with MNCs of developed countries in terms of quality and cost. The Indian share market can now boast of not only higher stock prices but also better governance in terms of shorter settlement, better margins, tighter listing and debt norms. The GDP is growing at a healthy rate and exports are outpacing GDP. A stronger Indian rupee has made dollar imports cheaper thus further fueling growth. In such a positive scenario, it became imperative that the Government introduce new reforms for better financial management of the economy. The Fiscal responsibility and Budget Management Bill of 2000 was one such step. Economic and financial liberalization has been a strong driving force in emerging corporate governance in India. The process was initiated by by Rajiv Gandhi in 1980s but really gathered momentum in 1991 under the tutelage of PM Narismha Rao and FM Manmohan Singh and successive government have generally supported the reform process.

RESEARCH METHODOLOGY I have research adopted doctrinal methodology and literature review in this project work and besides this I have also incorporated the experts suggestion in this assignment work.

RESEARCH QUESTIONS  

What is role of legal system in creating an effective corporate governance mechanism? How does Companies Act, 2013 aims to improve the governance standards?

LITERATURE REVIEW

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http://www.legalserviceindia.com/legal/article-209-introduction-to-corporate governance.html Good governance is integral to the very existence of a company. It inspires and strengthens investor’s confidence by ensuring company’s commitment to higher growth and profits.

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https://autotechreview.com/opinion/guest-commentary/emerging-trends-in-corporategovernance-landscape Under the revised regulatory environment, responsibility and liability of Directors have also been elevated to an unprecedented level. For example, section 134 (5) requires the directors of a listed entity to state in the Director's Responsibility Statement about the adequacy and effectiveness of internal financial controls.

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https://corpgov.law.harvard.edu/2018/12/30/2019-global-regional-trends-in-corporategovernance/ Motivated by a desire to attract global investments, curb corruption, and strengthen corporate governance, India is continuing to push for regulatory reform. In the spring of 2018, much to the surprise of many, the Securities and Exchange Board of India (SEBI) adopted many of the 81 provisions put forward by the Kotak Committee.