Corporate Governance – A Myth Or Reality?

Introduction

Corporate governance is often discussed as a framework of board meetings, committees, disclosures and regulatory compliance. For some businesses, it may appear to be a formal concept relevant mainly to listed companies and large corporations. For others, it is viewed as an essential system for ensuring accountability, transparency and responsible decision-making.

So, is corporate governance merely a myth, or is it a genuine business necessity?

In India, corporate governance is not simply a voluntary management philosophy. Several governance principles have been incorporated into the legal and regulatory framework applicable to companies. The Companies Act, 2013 contains provisions concerning directors' duties, board composition, independent directors, audit committees, related-party transactions and other governance mechanisms. Listed entities are also subject to additional requirements under the SEBI (Listing Obligations and Disclosure Requirements) Regulations,