Corporate Governance Past, Present & Future In India
LawZ Magazine|February 2018

While corporate governance may not dictate the economic prospects of developing countries, it certainly plays an integral role in shaping them. Corporate governance deals with the rights and responsibilities of a company’s management, its board, shareholders and various stakeholders.

Vipin Agarwal
Corporate Governance Past, Present & Future In India

Corporate governance in a developing country setting takes on additional importance. Good corporate governance is vital because of its role in attracting foreign investment. The extent of foreign investment, in turn, shapes the prospects for economic growth for many developing countries. While India’s corporate governance framework is advanced for a developing country, it still can be significantly improved.

Why Corporate Governance? – Investors primarily consider two variables before making investment decisions–the rate of return on invested capital and the risk associated with the investment. In recent years, the attractiveness of developing nations as a destination for foreign capital has increased, partly because of the high likelihood of obtaining robust returns and partly because of the decreasing attractiveness of developed nations.

The lure of achieving a high rate of return, however, does not, by itself, guarantee foreign investment; the attendant risk weighs equally in an investor’s decision-making calculus. Good corporate governance practices reduce this risk by ensuring transparency, accountability, and enforceability in the marketplace. While the presence of a good corporate governance framework ensures neither stability nor success, it is widely believed that corporate governance can raise efficiency and growth, especially for countries that rely heavily on stock markets to raise capital.

Strong corporate governance has beneficial consequences even for countries that choose to follow a development strategy that does not focus on attracting foreign investment. Many developing countries are home to strong distribution cartels that waste scarce resources. Good corporate governance can reduce this wasteful behavior and, thus, “overcome the obstacles to productivity growth”.

This story is from the February 2018 edition of LawZ Magazine.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the February 2018 edition of LawZ Magazine.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM LAWZ MAGAZINEView All
Freedom Of The Press: Print Media Near -Vs- Minnesota
LawZ Magazine

Freedom Of The Press: Print Media Near -Vs- Minnesota

This 1931 case is a landmark judgement highlighting the constitutional protection given to the freedom of the press. 

time-read
4 mins  |
February 2018
Protection To Woman
LawZ Magazine

Protection To Woman

Well, the Indian Penal code, acts as a sword as well as a shield for the Indian women.

time-read
2 mins  |
February 2018
Corporate Governance Past, Present & Future In India
LawZ Magazine

Corporate Governance Past, Present & Future In India

While corporate governance may not dictate the economic prospects of developing countries, it certainly plays an integral role in shaping them. Corporate governance deals with the rights and responsibilities of a company’s management, its board, shareholders and various stakeholders.

time-read
8 mins  |
February 2018
Builders Can't Force Buyers To Go For Arbitration
LawZ Magazine

Builders Can't Force Buyers To Go For Arbitration

It is a well settled law that arbitration agreements do not bar the jurisdiction of the National Consumer Disputes Redressal Commission (‘NCDRC’) and other consumer forums. The issue was, however, reconsidered at length by a Full Bench of the NCDRC, in Aftab Singh v Emaar MGF Land Limited &Anr [Consumer Case No 701 of 2015] in view of the amendments to the Arbitration and Conciliation Act 1996 (‘the Amended Act’).

time-read
3 mins  |
February 2018
The Unwanted Acid
LawZ Magazine

The Unwanted Acid

Incidents of acid attacks in which the perpetrator throws acid at the face of the victim are on rise. Such acid violence have a specific gender dimension in India as a majority of reported victims have been women. While acid attacks constitute only a fraction of the total number of violent incidents against women, they are among the most horrific examples of brutality inflicted on women.

time-read
4 mins  |
February 2018
Iran Deal Withdrawal
LawZ Magazine

Iran Deal Withdrawal

WORST DEAL OR WORST MISTAKE

time-read
5 mins  |
July 2018
Law Regulating
LawZ Magazine

Law Regulating

ELECTIONS IN INDIA

time-read
4 mins  |
July 2018
Karl Marx
LawZ Magazine

Karl Marx

Karl Marx has been without doubt one of the most influential socialist thinkers till date. Although he was largely ignored by scholars, his social, economic and political ideas gained rapid acceptance.

time-read
3 mins  |
July 2018
Virtual Currencies In India Journey So Far
LawZ Magazine

Virtual Currencies In India Journey So Far

Bitcoin has been the talk of the market yet has the government report closed the doors to its development. 

time-read
10 mins  |
LawZ August 2018
Applicability Of GDPR On Goods And Services Offered Over The Websites Outside The European Union ​​​​​​​
LawZ Magazine

Applicability Of GDPR On Goods And Services Offered Over The Websites Outside The European Union ​​​​​​​

Applicability of the EU data Protection laws outside its territory and provision for its intl. avoidance

time-read
3 mins  |
LawZ August 2018