Corporate Governance Required Right Vision And Right Framework

Posted: October 7, 2014 in Corporate Lawyers
Tags: , ,

Corporate Governance is an economic instrument of managing and controlling the market and its derivatives. There are many factors like globalisation, technology and mobility inhabitants are accountable for the regular changes and fickleness in the marketplace and it is the serious need that government must take serious steps to avoid Satyam like market frauds. To adverse the negative impact of corporate activities on community and industry there is a need to evaluate the Companies Act 2013. Stakeholders have brought up issues over various conditions of the new regulation and the Commerce Ministry has also held conversations with the industries to address the issues.

Section 462 of the Act envisages relaxations in the form of not implementing some conditions or implementing them with exclusions or variations to specific class/classes of companies. India is bit slow in developing corporate governance ideas. The Companies Bill includes a number of new conditions targeted at helping the governance of public companies. The base of the Indian corporate governance design is affected by the UK’s governance design. Despite significant variations in the policy framework of the two nations why Indian implemented the UK model is really a big question.

SEBIThe Securities and Exchange Board of  India (SEBI), recently released a consultative paper on the evaluation of Business Govt. SEBI goes on to recommend making extreme changes like the consultation of separate administrators by community traders and he/she must receive necessary coaching and must pass a determining exams and the adopting of concept based approach.

There is a need for appropriate controlling mechanism in the Indian market which remain closed for decades in the past. To maintain visibility in the marketplace and to encourage foreign traders. No one would like to take interest in the instable and out of control market, here forth a controlled and internationally accepted corporate governance model is the demand of vibrant and changing Indian economy. The recent SEBI suggestions that the imitation of UK’S Corporate Governance Model is not feasible in Indian context as the UK-based model should be implemented very carefully given the extreme characteristics of certain suggestions is a right suggestion of Securities and Exchange Board of  India (SEBI).

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