Title: The changing landscape of corporate governance framework in India

Authors: J.P. Singh, Naveen Kumar, Shigufta Hena Uzma

Addresses: Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee 247667, Uttarakhand, India. ' Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee 247667, Uttarakhand, India. ' Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee 247667, Uttarakhand, India

Abstract: Significant changes have taken place in India after its independence, making the economy more diverse and complex. Among the fastest developing countries of the world, India is in the continuous process of upgrading its corporate governance (CG) framework to endow a transparent business environment. The present article makes an endeavour to retrace developments in CG in India from independence to date. The study analyses the issues and challenges posed in (1) the era after independence and (2) post-liberalisation regime and examines the development of CG during these periods to address these issues with a focus on the Companies Act, 1956 and Clause 49 of the Listing Agreement. The article also evaluates reforms proposed under the new framework of Companies Bill, 2009, which enables an opportunity for lawmakers to reassess the extant CG framework and initiate appropriate improvements that can reinforce investor|s confidence in the Indian economy in the aftermath of the Satyam fiasco.

Keywords: corporate governance; Clause 49; Companies Act 1956; Companies Bill 2009; board of directors; Satyam; India; auditing; business transparency.

DOI: 10.1504/IJICBM.2011.042322

International Journal of Indian Culture and Business Management, 2011 Vol.4 No.5, pp.506 - 522

Published online: 04 Sep 2011 *

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