Authors: Neeti Shikha; Rishika Mishra
Addresses: Symbiosis Law School Noida, Uttar Pradesh, India ' Naveen Vidya Bhawan School, Jabalpur, Madhya Pradesh, India
Abstract: Most of the business conglomerates in India are family-run entities who govern the company, even from a back seat. The promoters, who are in most corporate scenarios also the majority shareholders, rule the roost. The minority shareholders and the board are held hostage to the former's powers. This paper explores the role of promoters in corporate governance in India through two recent corporate debacles of Tata Sons and Infosys that have brought to fore many glaring questions and harsh realities of the existing governance systems including the role of promoters and independent directors viz a viz the minority shareholders and separation of powers between the promoters and the board. The paper discusses the efficacy of legal framework in this regard and suggests fresh regulatory measures that could catalyse the process of effective governance.
Keywords: corporate governance; promoters; shareholders; investor; Kotak committee; remuneration committee; oppression and mismanagement.
International Journal of Corporate Governance, 2019 Vol.10 No.1, pp.20 - 41
Received: 23 Nov 2017
Accepted: 12 Jul 2018
Published online: 27 Feb 2019 *